Economy is going down the drain. Economy is going bust. The IMF Loan seemed inevitable. But why is the Government delaying to seek the loan with its huge promises yet to be re-discovered, re-planned and may be executed sometime. Especially with an under 3% growth in comparison to 5.8% as left by their successors, we are losing jobs if anything but creating new ones. This reported growth too is at the behest of the CPEC (China Pakistan Economic Corridor) and usual aids/soft loans from Saudi Arabia and U.A.E. Do you think that the Saudi Arabia can save Pakistan in the current economic crisis? No. They are already diversifying their investments in India. Some foreign direct investments (FDI) came in pretense of CPEC in Pakistan included Arcelik (Turkey) buying Dawlance and FrieslandCampina (Netherlands) buying Engro Corporation. But this is exactly one of the major business problems faced by Pakistani Startups in 2019 that no foreign direct investments is coming to them.
What are the factors responsible for declining foreign direct investment (FDI) in Pakistan in 2019
Pakistan received less FDI than even the Indian city of Delhi. The Government has not been up to the mark and its Finance Minister Mr. Asad Umar is wrongly frustrated over the results only he can deliver. The adviser to the PM on economic affairs, Mr. Abdul Razzaq Dawood is found to call Pakistan a failing state with all the limelight his Government tries to en-cash upon while begging in front of foreign investors. What the hell? He is raising false flags. We think he should be sacked. Even JKT is found to have stated that we should seek IMF loan; sooner no later. there is nobody but the IMF that is used to being the lender of the last resort -with the funds available for large loans to a country that needs dollars. No one else has the experience or the skill. No country can suddenly lend large amounts of money to another country - particularly without a project. China has figured out how to lend for projects. But, no one has any experience to provide large amounts of cash to another country without any collateral. What good is collateral, anyhow? However, the Government, instead of negotiations with IMF, is found itself engaged in trivial matters such as change of name of BISP, auditing and inspecting human capital resources at PKLI instead of catching the real mafia culprits i.e. within.
Small man on big post. Change BISP to Aleema Baji Support Programme. Also the rebranding will call taxpayer money.
— Zorays Khalid (@zorayskhalid) March 30, 2019
Pakistani Economy is Crumbling
Enough of cricketing analogies. Enough of throwing debris and nose-plucking on the past Governments. Now, its your turn. In 71 years, we have had 11K Billion PKR in loans where as just in these 7 months, the current PTI government has taken 2500 Billion PKR for loan repayments and rupee devaluation adjustments. There is an absolute uncertainty as the Government is found reluctant in giving a state’s policy on economy. In the past, as of today, our economy is struck by war on terror and the Government is not moving an inch backwards to cutting down on defense budgets. Fair enough. But it is the same name-tag reason now Pakistan is considered a safe haven for terrorists, how do we expect foreign direct investments in our country.
Forget about Industrialization of Pakistan
There is implementation of unequivocal taxation governing the state. Also, what i the name of austerity, we are hiking operations costs. In the name of increased exports, we have devalued and stooped so low that it is impossible to recover. God forbid never talk about the petroleum prices. Many pundits have predicted collapse of Pakistan economy over last few years but Pakistan economy has displayed amazing resilience up till now. It is high time that the common people say: “I am done with you” to Mr. Imran Khan and give democracy a chance. This Govt can’t even provide free medicines now.
When Zia Ul Haq left, our total debt was $13 billion Then came PPP & PMLN. Debt increased to $39 Billion. Then came Musharraf era. Although, debt only increased by $1.7 Billion to $ 40.60 Billion. During Musharraf era, the aid given to Pakistan was 32 Billion Dollars. Musharraf devalued Rupee only to leave people whimsical in his consumer economy bubble with hire-purchase model. Let’s just conveniently ignore all the easy debts and rescheduling that took place after 2001 which made Musharraf look like a messiah and put extra burden on next governments to further your propaganda! (The Paris Club offered $12 Billion loans for 38 years. Under the arrangement Pakistan would have to pay nothing in debt servicing during the first 15 years.) Not to forget, it was Musharraf who had left country’s lest its resources on war on terror for years and budgets to come. AND AGAIN. Then came PPP & PMLN. Debt increased to $96 Billion. Our problem with PTI is that, it campaigned that they will implement new taxes on people but they will take money from corrupt mafia. And the Govt. needs to improve its business strategy and earn something. Not lose extra bucks on Peshawar BRT. 2.3 Billion PKR per KM. Duh?