With a view to allaying fears of downward slide of our economy, the Veterans of Pakistan (former servicemen) have asked the government to issue a comprehensive 'White Paper' on economy, covering some of the following aspects:
1. Statistics on imports and exports during the last 5 years.
2. Government's steps to improve exports.
3. Have we lost our capability to repay loans and are forced to take more loans to repay the old loans.
4. No doubt, Ishaq Dar is innocent till proved otherwise by court. But is he in correct state of mind to be the finance minister? Do foreign financial agencies accept him as finance minister? If yes then why was another minister sent to USA to represent him? What are the compulsions to keep him on his present job when the cases against him also relate to financial matters?
5. Habib Bank was accused of some malpractices in USA and had to close down an important branch in that country. Is this bank also headed towards fate of BCCI? What action has been taken by the government or State Bank of Pakistan in that regard?
6. Condition of health services in the backdrop of doctors' strikes and condition of schools in the interior with special reference to brutal treatment by teachers that goes unpunished.
7. With regards to law and order, how many have been convicted for molesting young children, for honour killing and jirga decisions for dishonoring innocent women?
8. What was the power shortfall two to three years ago? How much additional power has been added by the Federal government? Present reduction in load-shedding is reported to be due to change in weather and some payments released under circular debt. Also, a lot was heard about corruption in Nandipur power project. What are the facts?
General Secretary VOP Brigadier Syed Masud ul Hassan (retd) told Business Recorder online that Executive Council of Veterans of Pakistan (representing over two million former servicemen) discussed public reaction to the recent address by CoAS on economy of Pakistan. Different meanings are being given to this address. Some are saying that country's economy was beyond Army's domain while others are saying that he should not have talked about economic issues in public.
Federal Interior Minister Ahsan Iqbal has found another occasion to target Pakistan Army by blaming DG ISPR for commenting on economy, not to the liking of the Minister. World is not waiting for DGISPR's comments, they are already aware about state of Pakistan's economy. One of the most prestigious newspapers, The Financial Times, says: "Pressure on rupee exposes Pakistan's economic weakness". State Bank of Pakistan warns of "Massive jump in fresh sovereign guarantees, Rs 586.3 billion this year as compared to average of Rs 143 billion for the past five years". Practically, these are loans. Bank report warns that this greatly increases the risk of default, forcing immediate reimbursement.
The former military leaders expressed surprise over such a narrow approach by some of our knowledgeable people and shutting eyes to the reality. Country's economy has direct effect on military's preparedness particularly for a country like Pakistan that has limited resources but unlimited enemies, against whom we have to match our defensive capabilities.
He said members of VOP are neither economist nor have access to real statistics about our economy. Their knowledge is basically limited to what is reported through media. Numerous authors have been writing about grave threats to Pakistan's economy, both domestically and to the external account relative to our Reserves ie Balance of Payments. While both are important and intertwined, the vulnerabilities are far greater to the External Balance of Payments account in the coming months due to our dependency and linkages with the International Monetary System.
The importance of the foreign exchange reserves becomes even more important due to the IMF program, the servicing of our debt in US dollars, international rating agencies, and of course CPEC that depends on the free flow of international payments. Disruption to our ability to operate in the international monetary system can stifle our economic progress and bring our economy and key strategic projects in the pipeline to a grinding halt. The Daily Financial Times has really painted a very depressing report on Pakistan's economy.
He pointed out that Minister Ahsan Iqbal displayed his respect for the Army, that is rendering historical sacrifices for the country, but by directly or indirectly instigating the crowd at judicial complex to raise slogans of 'Shame Shame', he should also explain who his targets were.
Our government is claiming lots of credit for improvement in electric supply. There are others who give credit to changing weather conditions and some payments made under the huge circular debt.
There is also a talk about possibility of imposing financial emergency. Members fear that if that happens then expenditure on defence preparedness could be the first target.
That would also satisfy some of the Western powers who are not happy with our weapons' development.
He said the government should answer the points raised by the media and newspapers in this regard by issuing a comprehensive white paper about the state of the economy.
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