The new coalition government will deserve credit for taking up state responsibilities and setting aside the confusion that existed after the elections. The main challenge it will face is the debilitating economic situation the country faces. A recent sixty-eight-page report by a think-tank highlighting the outstanding internal and external loans is simply frightening for informed citizens. The new government will have to make hard decisions to improve the economy at the cost of its popularity.
An Islamabad-based think tank, Tabadlab, has produced an alarming report regarding the country’s debt and called it: ‘A raging fire: Pakistan’s debt crisis’. According to the report, the total debt amounts to Rs77.66 trillion or $271 billion. Despite the incredible outstanding debt, the new government will have to negotiate for more IMF loans as soon as it assumes administrative control. According to Bloomberg, Pakistan will seek a $6 billion new IMF programme to enable the incoming government to repay billions in debt within this year.
The new government will have to make hard decisions to improve the economy at the cost of its popularity.
The question arises where billions of dollars in loans are spent. There exist black holes that eat up the loans. As reported, Pakistan’s state-owned enterprises caused a loss of Rs700 billion last year. We committed with the IMF to privatise the huge loss-makers such as the PIA, Pakistan Steel Mills and state-owned electricity distribution companies. The PSM is a typical case of patronage or negligence; whatever you may call it, by various governments. The mills have been out of commission since 2015 but its employees were regularly paid about Rs380 million out of public tax money every month. No wonder that every citizen of this country is in debt of Rs2,50,000.
The financial situation of the country demands radical changes in the structure of bureaucracy. Recall how a top businessman in the country commented that two-thirds of the bureaucracy has no real work to do. It’s about time to slash it given the massive debt Pakistan has to clear. The salaries and many other privileges the upper layer of the government, including the judiciary, enjoy are completely incompatible with the economic situation of the country. As a result, serious resentment exists against the privileged class and those living below the poverty line. On one side are the security protocols and high living of the privileged class and on the other are empty stomachs of millions of men, women and children. Those suffering don’t rise against the brazen injustice because of their religious belief that their fate is preordained by the all Mighty and Powerful above. Otherwise, a situation like Sri Lanka could have arisen long ago.
Another important issue that no government dares to point out and find remedial measures on is the population explosion in the country. Pakistan being the fifth most populous country in the world must raise eyebrows instead of brushing it aside. Down the ladder, it’s shocking to know that 26 million children don’t attend school. It must be every government’s priority to ensure that kids attend schools to have a basic education. The government must consider setting up vocational institutions at the district level. The students after getting the basic education should join the vocational institutions to learn various skills to be able to earn their living. Men skilled in practical education are most likely to find jobs abroad, including in the Gulf states and Saudi Arabia. Those trained to do technical work are not only respected but earn enough to live well. For instance, my friend in Melbourne informs me that a plumber in Australia lives in an expensive house and one of his two cars is an Audi.
The bottom line however is that the living conditions of the poor must improve. And they can only improve when strict population control by whatever means is exercised. The religious leaders could play a positive role as was done in Bangladesh to control haphazard population growth. Especially, the lower classes must be convinced to not compete in the propagation of large families. Most of the countries with less population are well-off and the majority of their populations are civilised and educated. When Sri Lanka and Bangladesh could manage to control the expansion in population and increase the literacy rate, why couldn’t we do it? Human development must be the main aim of every government.
The writer is a Lahore-based columnist and can be reached at pinecity@gmail.com
Radical Changes Needed
24
0
25.02.2024
The new coalition government will deserve credit for taking up state responsibilities and setting aside the confusion that existed after the elections. The main challenge it will face is the debilitating economic situation the country faces. A recent sixty-eight-page report by a think-tank highlighting the outstanding internal and external loans is simply frightening for informed citizens. The new government will have to make hard decisions to improve the economy at the cost of its popularity.
An Islamabad-based think tank, Tabadlab, has produced an alarming report regarding the country’s debt and called it: ‘A raging fire: Pakistan’s debt crisis’. According to the report, the total debt amounts to Rs77.66 trillion or $271 billion. Despite the incredible outstanding debt, the new government will have to negotiate for more IMF loans as soon as it assumes administrative control. According to Bloomberg, Pakistan will seek a $6 billion new IMF programme to enable the incoming government to repay billions in debt within this year.
The new government will have to make hard decisions to improve the economy at the cost of its........
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