Lack of financial prudence

This is apropos a Business Recorder op-ed “Waiting for ‘manna from heaven’” carried by the newspaper yesterday.

The writer, Dr Sajjad Akhtar, has presented a highly realistic and holistic perspective on, among other things, the government’s abysmally flawed approach to economic challenges facing the country.

That his views are spot on or completely accurate is a fact. He has stated, for instance, that “It will be unlikely that ‘manna from heaven’ is bestowed to the nation, unless it is willing to sacrifice its unsustainable living standards backed by low income tax-to-GDP ratio (fiscal policy), flourishing casino economy (monetary policy), rent seeking through ‘Khanchas’ (weak laws), poor governance (bureaucracy and mafias), low productivity (skills), dependence on remittances and pampering of remitters (consumption)”.

In my view, his argument boils down to one thing – our reckless extravagance or wastefulness in the use of resources. In other words, we always lack the financial prudence that is required to correct our profligacies.

Moreover, I strongly believe that a fundamental change in the governance of the country will be the key to all other necessary changes.

Saad Mustafa (Karachi)

Copyright Business Recorder, 2022