Pakistan Today

Economy and security

Whose business is it?

 

Rather than the back-and-forth regarding whose business it is to talk about the economy, etc, both civil and military leaders are better advised to accept that sustainable economic progress is an essential pre-requisite for lasting peace and stability. And there’s only so much the army, or any army for that matter, can do to bring long-term peace if the country is not economically stable. Pakistan is not at the brink of default, but it is not very comfortably placed either, which should have both Islamabad and Rawalpindi worried.

Currently we’re in a situation where growth, though better than much of the past decade, is still among the lowest in the region, exports are low, imports are high, and the deficit has bloated to a record even by our low balance-of-payments standards. This has happened while the government has received an exogenous cushion in the shape of record low oil prices. Now, with Brent crude turning, and our earnings showing no sign of improving, there’s very little chance Islamabad can avoid going to the Fund before the next general election. Yet it does not inspire much confidence that the government simply refuses to accept ground reality, and sings only praise of its economic policies – which have dragged debt and deficit into deep, deep red.

When employment is low, and the common man has to pay for the government’s incompetence – only the lower and middle income groups finance Pakistan’s massive debt – it is naturally easier for militants to find happy recruits in our on-going mini civil war. Yet the government feels no need to change the finance minister, despite his own personal problems and inability to give the ministry much time. In such circumstances, it is only natural for questions regarding the economy to be raised. The country’s leadership should realise that while the economy is everybody’s business, since it touches all segments of society, it is ultimately the government’s job to address its problems. And judging from the way things are going, the finance ministry needs serious attention and far better stewardship.

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