How is economic stability possible?
EVER since we have gained consciousness, we have been hearing the noise of inflation and the instability of the economy.
The instability of the economy is discussed in the headlines and talk shows of every TV channel, but no one has been able to find a solution till date.
Our political leaders have found a formula to run the country and they have been applying that formula for the last 35/40 years, and that formula is to borrow from the IMF.
It is a pity that our country could not get better economic planners who can plan to run the country’s economy on the right track.
If someone is capable of this in Pakistan, he is not allowed to come forward at all because the seat of power is limited to a few families.
The news of economic stability is flying, but the reality is the opposite. Because in July too, the value of the rupee has seen an extraordinary decline, the reasons for which Finance Minister Miftah Ismail explained that the imports were high in the month of June, due to which the payments in the month of July were more than the inflow of dollars. which burdened the rupees. These are things beyond the thinking of a common citizen.
If the people are interested, the basic needs should be cheap, like flour, ghee, sugar, etc. But it is very important for every Pakistani that as soon as the rupee falls, the stock exchange falls.
We have brief news of the stock market crash, but it has a deep impact on the common man.
A downturn in the stock market does not mean an investment climate in the country and those capitalists who have some capital quickly pull out of the market, which further closes the doors of employment, does not create new employment opportunities and poverty increases further.
The stock market of any country is the hub of business, if the stock market continues falling foreign investment in that country is also affected.
Because foreign investors assess the investment climate of any country by looking at the stock market situation.
It is an important question what are the reasons for the downward trend in the stock market of our country?
Which no political leader is paying attention to, nor has any planning ever been made clear. Our country is running on IMF debt, as soon as the rupee depreciates and interest rates rises, the stock market falls.
The month of July turned out to be terrible for the local currency. During this one month, the value of the rupee fell by 14%.
Economists say that this situation is not only due to import factors, but the environment of political instability is also a reason.
The government should not only take these things into consideration but at this time there is a need for complete planning beyond the political upheaval and power tussle so that investment can be made in the country.
Domestic industries should be developed instead of spending valuable foreign exchange on unnecessary investment and imported goods, but our political leaders are not paying attention to this either.
The secret of the economic development of any country is mostly on the industries of that country.
It is our misfortune that all the political leaders have involved themselves in the political tussle, which is affecting the country’s economy and people.
The countries that became independent after us are also the closest to the ranks of developed countries today.
If we compare the policies of many countries, the secret of their development is that they have focused on their industries and made better policies, including China and Bangladesh, which focused on industrialization and Delivered their product to the top markets.
And not only brought those products to the global market, but also created a demand for those products, which had a positive impact on their economy, and also provided employment opportunities to the people.
Dear homeland has a large market of more than 22 million consumers, but many companies operating in our country also sell imported products instead of manufacturing products within the country.
Surprisingly, many goods that could be better manufactured in Pakistan have been given way to imports instead of focusing on the production of these goods.
In such a case, the possibility of a significant improvement in the value of the rupee on a permanent basis becomes less.
Governments around the world ensure increased imports to increase their incomes and not the allocation of leading developed countries.
Most of the countries in our region are following the same path. Those countries are not only trying to increase the production and exports of products and raw materials from their manpower and skills but are also largely successful in doing so.
But in our country, energy resources, etc. on the one hand, 10 billion dollars are spent annually on food, while our country is an agricultural country.
Instead of planning, this sector is also suffering from neglect. If the value of the rupee is linked to import payments, strengthening the rupee by reducing imports and increasing exports should be a long-term and consistent policy.
—The writer is working as an Administrator in Federal Board of Revenue, Islamabad.