This is apropos a Business Recorder editorial “IMF: delay deadliest form of denial?” carried by the newspaper yesterday. While aptly summing up the challenges facing country’s economy and the criticality of much awaited tranche from the lender of last resort the newspaper has hinted, albeit obliquely, at the prospect of sovereign default. In my view, a default is imminent for the external repayment obligations are unlikely to be fulfilled in view of falling workers’ remittances and exports, in addition to absence of any external lending support at least at this point in time.
The gravity of the situation can be gauged from wild speculations about country’s nuclear and missile programme, forcing the country’s Foreign Office to reject such rumours that owe their existence to our more than woeful state of economy. Moreover, we seem to have alienated the US at the altar of China-Russia policy reset - advertently or inadvertently. In my view, the US is still our first option; it’s our last option as well. Hence the need for revitalizing our relationship with Washington in view of our beleaguered economy and paradigm or radical shifts in the Persian Gulf following the China-brokered rapprochement between Saudi Arabia and Iran.
Insofar as India is concerned, we need not worry much because a destabilized Pakistan will never be in its own interest. There is therefore the need for looking at bigger picture in order to find a solution to problems or challenges through which we can protect and preserve our strategic and economic interests.
Rahat Saeed,
Karachi
Copyright Business Recorder, 2023
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