The caretakers are getting a lot of flak for all the right reasons. Not only has the political situation failed to become less murkier or complex following the exit of the Pakistan Democratic Movement (PDM) government and the consequent emergence of the incumbent interim setup, the economy now has come to a standstill amid wild speculations that strongly suggest that the country is again teetering on the verge of sovereign default unlike Sri Lanka which is now clearly transitioning from an economic crisis to recovery as a return to growth in this island state is expected next year.
In Pakistan’s case, however, the worst is not over yet. And, there are some plausible reasons to explain or argue why the worst may not be over for this South Asian economy. One of the chief reasons is that the halls of power in Islamabad have always been a rich source of stories about profligacy and waste.
In this regard, what is important to note is the fact that fiscal profligacy by successive governments, particularly during the tenures of Pakistan Muslim League-Nawaz (PML-N), Pakistan Tehreek-e-Insaf (PTI) and Pakistan Democratic Movement (PDM) from 2013 to 2023, since well before the arrival of the caretakers on the scene has sharply constrained the ability of finance minister Shamshad Akhtar-adviser Waqar Masood Khan economic duo to successfully carve out or create any new fiscal space.
She has attracted a lot of criticism for making a blunt ‘statement of fact’ before a Senate’s standing committee, conveying a message across that the aggravated economic impasse has not blunted the edge of her intellectual propriety.
But the finance minister was fully aware of the gravity of the situation before or by the time she agreed to join the caretaker cabinet as one of its key members.
In my view, she must not give up and become part of a solution without any further loss of time, given she has the required ability and skills to make a difference, always.
Nilofar Khan (Islamabad)
Copyright Business Recorder, 2023
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