Inspite of its limited mandate, the caretaker federal government is taking important steps to restore the country's economy, improve the law and order situation, provide health facilities, promote sports and provide fertilizer to farmers at equal rates and health.

On Tuesday, an important meeting of the Economic Coordination Committee of the Federal Cabinet was held under the chairmanship of Finance Minister Shamshad Akhtar in which important decisions and funds were approved for several projects.  There is a need to effectively control the recent wave of terrorism in Pakistan. The Committee decided to release a technical supplementary grant of Rs 25 crore for the Intelligence Bureau's upgradation, technical augmentation and field activities in view of its increasing national security responsibilities. Currently, urea fertilizer is being produced and imported in the country. Therefore, a mechanism was developed to determine its average price keeping in view its import and production cost and the Ministry of Industries and Production was directed to ensure its availability.

After touching the heights of Pakistan Hockey, it is currently in decline. For the current financial year, the committee has approved Rs. 10 crores for the revival of the participation of the national team in international competitions and the promotion of other sports.  They will also be able to participate in Davis Cup tennis competitions and English word-building games such as Scribble and Chess. State Bank of Pakistan has been exempted from issuing funds from the re-landing policy and a supplementary grant of 3 billion 56 crore 87 lakh 19 thousand has been approved for the Ministry of Health. These projects of national interest are rightly the need of the hour and the ECC's initiatives in this regard are of far-reaching significance.In the national economy, although there are promising prospects in the form of boom in the stock exchange and improvement in the value of the rupee, the burden of unsustainable debt and the challenge of paying huge interest on it is still a major obstacle to get rid of the quagmire of difficulties.

To deal with the situation temporarily, we have no choice but to seek further loans from the IMF and request continued financial support from friends.  In the ongoing meeting of the IMF, the release of the second tranche of the standby arrangement worth 700 million dollars is expected, but at the same time, obtaining more support from Saudi Arabia and the Emirates is also necessary for financial stability.  Based on this, according to the sources, the Emirates in addition to rolling over the reserves of two billion dollars from Saudi Arabia, discussions are being held on extending the delayed payment facility for oil supply from Saudi Arabia for one more year. This facility of oil supply of 100 million dollars per month from the Kingdom of Saudi Arabia has ended last December, but our financial conditions require an increase in its duration.

 According to the sources, Pakistan has to pay a total of 24.8 billion dollars in interest on external debt, including 13 billion dollars in rollover and commercial refinancing, while the remaining amount is to be paid to avoid default in external debt and obligations. How will the government formed after the elections get the country out of this difficult situation?  According to the State Bank of Pakistan, the external debt of the federal government in the period from November 2022 to November 2023 reached 63 thousand 390 billion rupees after an increase of 12 thousand 430 billion rupees.  There are still 6 months of the current financial year and the government has borrowed 907 billion rupees from July to November.  In November 2022, the value of the debts owed by Pakistan had reached 50 thousand 959 billion rupees, while in June 2023 it had reached 60 thousand 841 billion rupees.  In these circumstances, privatization of public sector enterprises is seen as a support for the government and this process has been going on for more or less two decades.  According to economists, their sale will create many problems and a huge storm of unemployment. There are various reasons why the economy has reached the current state, the main ones being the economic and social problems arising from the unequal distribution of wealth and corruption. Restructuring is needed, otherwise the government will have to multiply its sources of income, which has already been going on for four to five years, and every time it falls on the poor, salaried and already tax-paying classes.  The Business Facilitation Council is working tirelessly to achieve the goals, but the handling of economic conditions is a question mark until unnecessary facilities are withdrawn from the privileged class, a large part of whom are non-tax payers.

Today, the outstanding debts of the country have exceeded 62000 billion rupees. Currently, among the countries and international organizations that Pakistan is indebted to, the IMF, World Bank, Asian Bank, Paris Club and friendly countries China, Saudi Arabia and the United Arab Emirates are at the top.  According to a report of the World Bank, Pakistan is among the 10 countries that have taken the most debt at the global level. When it comes to the largest debtor countries of the IMF, Pakistan ranks fifth after Argentina, Egypt, Ukraine and Ecuador.  In the loans received from the IMF, Pakistan is at the first place. It is coming that someone else takes the loan and someone else pays it. Finally, all this has to be paid by the taxpayers of the country. Where the lovers of Pakistan. Citizens who care about the country and its pain are trying to bear this burden, it is a moral requirement that all stakeholders understand their responsibilities, the day every citizen participates in it, depending on the status, to remove foreign debts and development.  And it won't be long before the unstoppable journey of prosperity begins. We are in vicious cycle of debts. Of the debts owed to Pakistan, China's debt alone is worth more than 36 billion dollars. In contrast, the IMF's debt is 7 billion 800 million dollars, but this institution is repeatedly rubbing its nose with Pakistan to give more loans.   It is the result of IMF's strict conditions that the inflation in Pakistan has crossed all the limits of history and the people are crying out. Due to Pakistan failure to keep up past promises, the IMF is constantly putting pressure on Pakistan and its conditions.  The government should make an effective policy especially regarding foreign debt and take effective measures to put the economy back on its feet through austerity policies with the help of friendly countries. Right now, the situation is such that not only the government but also the people have to think more about living within their means.In order to come to power in the future, the political parties should present reasonable and comprehensible practical programs to the nation instead of making impractical claims in this regard and the people should decide to vote on this basis.

Published in The Daily National Courier, January, 13 2024

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