Now that the World Economic Forum (WEF) has identified Pakistan’s water crisis as an impediment in ‘ease of doing business’ this particular problem could not have assumed any greater proportions. Thankfully the chief justice as well as the prime minister, lately, have identified depleting indigenous water resources as a very pressing concern. They have gone a step further and encouraged Pakistanis across the world to donate generously to their respective dam funds. The CJ has even taken the trouble to go all the way to the UK to raise money. Yet, as time has passed, the realisation is beginning to set in that despite the sincerest efforts we are no nearer really to making any dams than we were before this exercise.
For one thing the required amount is far too large for ordinary people to raise. For another, repeated bouts of devaluation push down the value of collected funds in dollar terms, which is frustrating. We should rather, perhaps, look to more practical solutions to problems that are staring us in the face. It is obvious that the dams, which are in every way necessary, will have to be funded by giant international financial institutions (IFIs) like the World Bank. And, since we are being practical, let’s not forget that the nod for the Bank’s engagement will come from the same place as the go-ahead for the IMF’s expected bailout of Pakistan’s balance of payments (BoP) crisis.
And that is where the government has let everybody down so far. It is non-committal about the most urgent threats to the economy. There’s all the noise about bailouts from friendly countries. But the Saudi help can’t be spent, the Chinese help can’t be disclosed, and there’s still no word about the Emirati help. Such uncertainty bleeds the market and delivers the kiss of death to investors, which is exactly what is happening. There’s no doubting the government’s commitment, but some of its tactics raise questions. Hopefully it will deliver a do-able economic/financial strategy sooner rather than later.
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