Pakistan’s economy is in a downward spiral. Inflation is at 25percent (food inflation 50 percent), foreign reserves are falling, and the government is in danger of defaulting on its foreign debt. A spike in global food prices has hit Pakistanis especially hard, and the global financial crisis only threatens to exacerbate Pakistan’s economic woes. Pakistan is watching foreign investors flee.
Weak governance has contributed to growing militancy in Pakistan, economic troubles, and regional instability. As in the past, the possibility remains that Pakistan’s military could conduct a coup if it perceives the government as inept. Or Pakistanis may rise up in protest due to the government’s inability to deal with economic issues.
Due to slippage in revenue and expenditure, there is dismal growth and lower tax collection. Heavy subsidy on oil has affected current expenditures and increased development expenditures. The external financing flows have been declining, so the government borrowed from SBP which caused monetary expansion.
Pakistan is surrounded by numerous internal and external threats of gigantic magnitude. Our motherland is the achievement of millions of sacrifices. Therefore, it is prime duty of every individual, the society, and the state to uphold the constructive norms in order to make the country proud. Pakistan is not a poor country but a poorly managed country; only a sincere leadership with real commitment can turn this hell into heaven. Only the people and a dedicated leadership can improve the economy.
SYED SAAD HUSSAIN
Karachi
