The economy of Pakistan is quite eccentric and is based on government to government policies. It is quite complex to make predictions in it. Every new government will put into practice its own policies. It will by no means accept anything even worthwhile from the preceding government. The major factor that causes negative sway on the economy is loan especially from external sources.
With the rise of twenty first century, when the other countries – mostly the developing ones like India and Bangladesh – were thinking of utilizing the technology to improve their economies, Pakistan was afraid of getting attacked by America. 9/11 shattered every aspiration that Pakistan had and sheer focus was over fighting ‘War on Terror’. America threatened to annihilate Pakistan if it does not live up to its expectations. Though the economy showed better trends as compared to the subsequent eras, it was stumbling and the foreign loan stood at $40 billion.
People thought, after General Musharraf’s era, now that the democracy has come after the general election in 2008, they are going to get prosperous. Unfortunately, the situation went worse; PPP focused only on foreign loans to complete its period of influence.
The government set new record of foreign liabilities. The foreign loan stood at $65 billion in 2012 – a major blow to economy. Its national identity was a begging bowl and its tenure is considered to be the darkest era in the history of Pakistan. The conferences like “Friends of Democratic Pakistan (FODP)” were nothing but a process to further enslave Pakistan.
The contemporary government of PML-N is following suit. Its major focus is also over borrowing money from entities like Word Bank, IMF, ADB, and others. The terms and conditions of WB and IMF are in some cases too horrible to mull over.
According to Moody’s, the current loan on Pakistan is $79 billion. This figure is quite ghastly. We are a nuclear state with fragile economy that cannot bear more debts. The government even after taking so many loans has failed to bring about income-generating sources. The state institutions are falling down. They have grown to be white elephants. Steel Mills, PIA, and other institutions need bailout packages on yearly basis and are near crumpling.
The government of PML-N is taking loans to repay the installments of previous loans. This trend is nothing but a joke to the nation. Let us cut our coat according to our cloth.
The COAS Qamar Bajwa spoke out fittingly that the debt was sky high and there was a need to make intricate decisions to break the begging bowl. The linkage between security and economy is very strapping. People who have some sense of economy know the adverse impacts of loans on the coming generations. An economy built on loan is like a bubble that will burst out sooner or later and the result will be zero out of zero.
Now, it is the time to nip the corruption in the bud as it is one cause of taking loan to fulfill the needs of the state. The loan should be abolished at any cost. A country needs effective and efficient democratic leadership which makes strategic planning. The corrupt ones will keep on borrowing instead of expanding income-generating sources within Pakistan. Moreover, if our leaders break the begging bowl, no foreign institution or country will dictate Pakistan’s security priorities.