This is apropos a Business Recorder editorial “Ominous start to new (fiscal) year” carried by the newspaper yesterday. The newspaper deserves a lot of praise for presenting a highly informative perspective on the subject or the current economic situation.
It has concluded its argument by saying that “Pakistan is about to enter very uncertain phase with the IMF (International Monetary Fund) programme in play and a caretaker government in office. The recent past has shown, repeatedly in fact, that this arrangement can breakdown without warning and stay frozen for long periods of time. The need to keep reserves beefed up, as much as possible, on our own has never been greater.
For now, though, there’s not much more to do than wait and watch as the next month’s figure comes and the interim government takes shape.” The new government must pay attention to this advice. In my view, the caretaker setup that has formally moved into action following the formation of the federal cabinet must show full appreciation of the gravity of the country’s economic situation.
It is, however, heartening to note that the federal cabinet comprises, among others, former governor of State Bank of Pakistan Shamshad Akhtar, and former federal finance secretary Waqar Masood Khan, who can surely steer economy to safety. But the caretakers will be required to ensure fiscal discipline at all cost. Years of fiscal profligacy have already left the country deeply in debt.
Mehtab Khan, Lahore
Copyright Business Recorder, 2023
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