Imran’s failed recovery plan
IMRAN’S run of the mill ten-point economic recovery roadmap is a failure. It lacks fundamental economic reforms without which Pakistan cannot overcome current economic and foreign policy crises. There is no PDM and establishment in US, UK and the EU but they are facing crippling cost of living crisis with record inflation, debt and unemployment exposing failure of West’s foreign policy based economic systems under democracy, democratic institutions, system of check and balance, independent judiciary media and STEM-based world-class education systems.
Ex-PM’s statement of public mandate for implementing difficult decisions due to no easy way out shows like past he has no economic plan. Global cost of living crisis, 800M Indians on ration cards, 16M Indians left unemployed annually and $1.4T state subsidy in 2022 under country first policy to US, Germany, France and Italy auger failure of his FDIs, exports, tourism, minerals for generating revenue and bringing dollars and controlling money laundering. Pakistan needs to reverse handful of policies and stop corruption to have strong economy, jobs and independent foreign policy.
Accordingly, it is time to relink rupee to gold to end colonization. Allen Greenspan said gold is a primary indicator. Under 1945 Bretton Woods Agreement, world linked currencies to gold for mutual exchange which Swiss and US left in 1971 to save their economies (in 1971 gold $35/oz rate $1/35th of an oz of gold, $1/1978th current rate, 6 April 2018 Forbes). It will stop Pakistan’s dependence on forex reserve for payment, exports, subsidies, foreign remittances while controlling debt, inflation, prices, salaries and foreign policy.
It will end crony capitalism (alliance of politicians and businesses), rent seeking (individuals creating and benefitting from political and social chaos to make money without contributing to economy) and monopolies. The delay from IMF and other friends is to keep status quo with dollar hoarding oligopoly on board. To revive economy, change is must. It is also an economic class war in which rich and powerful are socializing debt and privatizing profits.
Then enact banking reforms to restore tradition saving based banking system including Glass Steagall Act which Clinton scrapped in 1999 causing 2007-8 financial crisis. The ongoing bank collapses merit returning SBP under government. It will help government use public savings to fund mega projects which now independent financial sector is using to make money and then lending to state while forcing government to print money, take debt and transfer inflation to public (Republicans aren’t going to tell Americans the real cause of our $31.4tn debt, 1 Feb 2023 the Guardian).
In 1980, both Thatcher and Reagan introduced economic reforms which included privatization of industry, jobs, salaries, pensions, innovation, price control to market, education, healthcare, transport, food, energy and water. Local manufacturing was outsourced to supply chains to cut costs, corruption and poverty which by default took away security of energy, pharmaceuticals, food, seeds, fertilizers, chemicals, irrigation, water storage and in many countries water also. Replaced debt balancing with debt ceiling making politicians accountable to lobbyist not voters which undermines democracy through gerrymandering, attacks on judiciary, civil and military establishment, media, use of militarized police, forever wars, changes in constitutions and 6 January or proroguing parliament (Boris Johnson, UK).
Education sector needs reforms after it failed in the West. The supply chain economies have blocked countries from manufacturing cheap products and fuelling unemployment. Multinational mafia produced Covid vaccine, blocked People’s vaccine in WHO and sold under $3 vaccine well over $100 apiece while using them for geopolitics. Brain drain is encouraged to hide student debt, worker shortages and fallout of for-profit education. It has resulted in low wages of citizens, forced women from having children (women work for 2 months for free, 23 Feb 2023, the Guardian), populism, anti-immigrant politics and gross human rights violations. The UK is restoring vocational and technical institutions to offset higher cost of living and unemployment but politicians and importers blocking it for profit and employing overseas workers paid 60% less salary turning the West into slave camps with broken immigration system. These steps can help serve public, industry, manufacturing (SME), community and country.
Western economic models are producing jobless economies causing fall in living standards, debt, failed social mobility (40% children unable to afford homes living with parents), stagnant wages forcing working poor on food stamps (BISP) and abuse. To overcome this interconnected challenge, Pakistan needs to enact land reforms (Homestead Law) for jobs for families and save Rs400bn from BISP and police budget. Restore family unit to take care for parents, for childcare and handicapped while avoiding social fallouts.
As per data including British media, renationalisation can help Pakistan cut 70 per cent monthly living costs of public being spent on rent, energy, transport, education, medicines and healthcare while increasing annual revenue by 60% by linking salaries to inflation, giving permanent jobs, pension and taxing income like Eisenhower (90%)/Roosevelt (70%) not last three US Presidents accumulating $21.4T debt with income tax under 25%. UK energy companies earned £171bn profit (Saudi energy exports $161bn) which is profiteering at cost of public (eat or heat).
