The State Bank of Pakistan governor’s “Annual Report for 2022-23” has pointed out, among other the things, the major challenge facing the country through the outgoing year: political uncertainty.
The governor’s report censures, albeit indirectly, the performance of our governments. The fact that the country needed and still needs political stability to improve economic indicators cannot be overemphasized.
According to the governor, the political uncertainty weighed heavily on business and consumer sentiment resulting in the contraction of real GDP by 0.2 percent in FY23. It is, however, heartening to note that it was only recently that the business confidence has somehow improved but the economy, including businesses, is still in dire straits.
This improvement may be attributed to the fact that the confusion or lack of clarity with regard to elections is no longer there. Growing political instability along with a protracted economic impasse has hit the rich and the poor alike.
The current caretaker setup and its predecessor Pakistan Democratic Movement (PDM) coalition government did little or nothing to arrest the economic slide. Neither did anything meaningful to help remove political uncertainty in the country.
Enormously expanding current expenditure by both the governments has only added insult to the country’s fiscal injury. Both the PDM government and its successor, the caretaker setup, have added to people’s economic woes, instead of providing them any meaningful relief.
The country’s economic growth is the major victim of their ineptness, shenanigans, and their lack of empathy. Both have presided over the ruination of economy, to say the least. The government that comes into office as a result of the upcoming general election will be required to deal with myriad challenges on a war-footing.
Salma Abbas Akhund, Karachi
Copyright Business Recorder, 2023
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