It seems easier to play politics than manage an economy, especially one that is heading for freefall. Forex reserves have fallen to a foutr-year low, and the problem is that of the $6.72 billion remaining, about $3 billion are a Saudi deposit which cannot be used to pay for imports, and has been parked in Pakistan merely to make the reserves look better than they are. Even including that Saudi deposit, only a month’s imports are covered, which is woefully inadequate/ Pakistan has already asked for $3 billion from Saudi Arabia, the request being passed on by Finance Minister Ihaq Dar in his meeting with the Saudi ambassador on Thursday. This is in addition to the rollover of the deposit, Doubtless Mr Dar will have explained why Saudi Arabia should throw good money after bad, and why, as Saudi Finance Minister Abdullah Al-Jaldan said while announcing the year’s budget, Saudi Arabia would support the region’s economies against the effects of inflation.
One problem is seen in Mr Dar’s activities. Last time Pakistan had to make a payment on a commercial loan, on December 2, he said at a press conference that Pakistan was not in danger of default. Now he has left the job of talking up the economy to State Bank Governor Jamil Babar. Mr Dar was brought out of exile by the Shehbaz government because he was an expert at righting an economy. Well, it hasn’t worked. True, he does not seem to have done much harm, but he does not seem to have done much good. He is busy politicking, with his recent meeting with President Arif Alvi devoted to ending the political crisis caused by the President’s party, the PTI, insisting on fresh elections. While the PTI leads the cries of default, the PDM government is now giving up focus on the economy as it prepares to bring party supremo Nawaz Sharif home.
The parties need to realize that a default means that Pakistan will mo longer be able to import fuel, lifesaving medicines or such staple foods as edible oil, wheat or sugar. They need to come together, not because they can stave off a default, but because the country must put on a show of unity in the event of one happening. All parties must realize that if the country goes under, their politics will not survive.
