Business Recorder op-ed writer Ali Khizar has raised a very important point in relation to the ongoing talks between the government and the IMF. According to him, "the ongoing IMF programme negotiations are tough; and this is not because of any delays or mismanagement of affairs as proclaimed by a few. The truth behind the story is that the fiscal mess is at an unprecedented level, and within it, energy related subsidies and debts are fast approaching at unmanageable magnitude. The energy issues are across the chain, and the situation has worsened in the past few years with the addition of new energy sources."
It is quite unfortunate that increased energy supplies have failed to effectively fuel manufacturing in order to boost country's exports. Rising energy sector circular debt and lower productivity therefore constitute a situation that includes two major disadvantages for the country's economy. The PTI government, unfortunately, has so far failed to have full appreciation of the economic mess in the country. It must not lose sight of the fact that the current situation is causing despondency and anxiety among people. It must take some remedial but right steps without any further loss of time.
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