This is apropos a Business Recorder op-ed ‘Slump in industrial production’ carried by the newspaper on Tuesday. Although the writer, Dr. Hafiz A. Pasha, has tried to conclude his argument on a positive note by saying that “We hope that the performance of the sector will be better in 2023-24”, his concerns about the state of economy that he has strongly voiced have only deepened the negative sentiment that has been unfortunately characterizing our all sectors of economy since the last year in particular.

Unfortunately, however, finance minister Ishaq Dar is exuding optimism and confidence despite deepening sovereign default fears.

In my view, not only is his optimism misplaced, he has also failed to take any concrete step to help the country get much needed IMF bailout to end the situation of growing uncertainty.

That the situation is becoming more and more complex is a fact that has found its best expression from government’s purported approach to the upcoming budget; it has decided to present a populist budget in order to brighten its electoral prospects, although it is required to come up with a fiscally responsible budget in view of a slew of economic challenges facing the nation.

In fact, populism is swiftly growing in the country particularly since the 2018 general elections. Little do, however, our rulers realise that populism is challenged by its own manifestation in the fiscal policy. The budget for fiscal year 2023-24 will be a case in point.

Saadia Hidayatullah (Karachi)

Copyright Business Recorder, 2023