Mere eyewash
Private publications awards to managers of a country’s economy are nothing new nor do they hold much merit. The awards that Finance Minister Ishaq Dar and SBP governor Ashraf Wathra have received by two such publications for their respective performances this year should therefore by no means be misconstrued as well deserved recognition of services rendered for the betterment of the country – that is hardly the case here.
Our exports continue to fall as does their contribution to GDP which is at a negligible 7.3%. The nonchalance with which both the FBR and government shrug away quarterly reports of missed revenue targets is deplorable. The fact that remittances have dropped and will continue to do so due to the Saudi Arabia construction market collapse means we will be even more reliant on tax revenue. The government however refuses to accept this reality and continues with the same outdated flawed tax policy.
In his party’s manifesto for the 2013 elections Nawaz Sharif said they would double the GDP growth rate -we are not even close and reduce the country’s dependence on foreign loans –our external debt is at record levels. Promises of eliminating circular debt were made and somewhat fulfilled when a huge chunk was paid off when PML-N took office however that bubble too has burst as the figure is again close to the levels of 2013.
PML-N has started their reelection campaign with the only talking point they perhaps believe is deliverable with the time they have: ending load shedding. But that is a long shot as well given most energy projects under CPEC are not expected to add to the national grid before 2018. Simply put this government has failed to deliver on the structural reform promises it made during election time, rendering them unable to achieve growth targets. Mere eyewash is certainly not enough to achieve actual GDP growth.
