As the economic situation turns grim, the PTI and the ruling alliance remain concentrated on winning the by-elections in Punjab by hook or by crook. Whatever reference is made to the current economic slide, is aimed at point scoring in the electoral race. Each side accuses the other for prevailing economic woes. PTI chief Imran Khan continues to claim in the pre-poll power shows that Pakistan was making exemplary progress on the economic front under his watch. According to him, the policies of the ruling alliance have brought the country into a situation where it could soon turn into another Sri Lanka. He fails however to explain how a country supposedly on a sound footing and on way to becoming a regional power could be turned within a couple of months into a failed state PML(N) leader Maryam Nawaz on the other hand holds Mr Khan responsible for the current inflation as he reduced the petroleum price against an understanding reached with IMF. According to her, people have to vote for the PML(N) candidates to see economic recovery. She claims that hard decisions have been taken and henceforth they would be hearing good news. She just stopped short of claiming that the PML(N) possessed Alladin’s lamp.
The economy continues to be in the doldrums. The cut in the gas supply to the textile sector which was provided on a regionally competitive price has reportedly led to closure of over 300 textile mills. Auto industry players anticipate a 30 percent drop in production. Meanwhile the global economic turndown is having a negative impact on the country’s start-ups with some closing down their operations while others reducing their activities. In all these cases there would be lay-offs as well as considerable losses to government revenues. With the rise in external debt servicing, the State Bank of Pakistan’s foreign exchange reserves have fallen to single digits despite a $2.3bn inflow from China late last month. The two governments in FY22 could not control the influx of huge imports totalling $80billion, creating a large current account deficit (CAD).
There is a need for political parties to learn the right lesson from Sri Lanka. If a country continues to spend beyond its means it is bound to land up in debt and lose its ability to stand on its feet.
