Financial crisis

The PPP government inherited a derailed economy which through years of fudging figures and poor governance had been reduced to a statistical miscarriage of facts. Although 6 precious months have been wasted, we finally have an economic team nominated by the government to handle a financial crisis, with our credibility seriously dented and our import bill and outstanding debt payments threatening us with a possible default on payments.
The most productive agriculture areas have been deprived of water, which has been diverted to less productive areas, with net national yields of cash crops reducing drastically.
The only factor that could justify the huge export-import deficit could have been large scale import of machinery to increase productivity, instead of importing irrelevant consumer items like cell phones, luxury vehicles, branded food items, chocolates etc.
Appointment of unqualified individuals to key posts in sensitive organisations and state owned corporations has reduced once profitable institutions to white elephants. Banks owned by security firms were heavily involved in trading activities, with net result that market risk became a substantial concern for both, courtesy a weak regulatory system set in place by PM Shaukat Aziz.
Much needed funds were diverted to developing real estate housing societies like the DHA, instead of investing in developing human resources and projects that accelerated real growth. The Tax to GDP ratio declined drastically through resort to indirect taxation while profits on real estate, stocks etc were not taxed.
Pakistan cannot afford to have a liberal policy where the undocumented economy far outstrips the documented economy, and individuals can transfer their tax free profits to foreign bank accounts through the Hundi system, which has far too long been protected by our establishment.
We can no longer afford the luxury of sacrificing our limited resources to appease political opportunists or for political exigency. State money cannot be allowed to be used or abused at the sole discretion of political masters or paid bureaucracy without any legitimised sanction, proper auditing and review through strict regulatory controls.