THERE is a growing realization across the political divide that the country was heading towards a default mainly because of the unending political instability.
This is evident from remarks made by seasoned politician Sheikh Rashid Ahmad in a tweet warning that there is very little time left to save the country from economic collapse amid renewed political turmoil triggered by the by-elections and re-election of the Chief Minister of Punjab.
Similar views are also being expressed by other politicians as well as industrialists and businessmen in the backdrop of dwindling foreign exchange reserves, nose-dive in the value of local currency and repeated setbacks to the stock exchange.
The situation is really worrisome despite claims made by State Bank of Pakistan (SBP) Acting Governor, Dr Murtaza Syed, who has denied reports that the country was headed towards an economic collapse, saying that “Pakistan is not susceptible as is being assumed despite soaring global inflation.
He assured the nation that the current leadership at the SBP was fully capable and fully authorized to manage all the regulatory functions, adding it is fully engaged with global institutions to overcome the present adversities in the international economic environment.
However, ground realities are not encouraging as the IMF deal is still not in sight despite a number of steps taken by the coalition government to meet the Fund’s pre-conditions.
We have constantly been pleading in these columns that the incumbent government has proven credibility to overcome the challenge provided political stability is ensured.
The growing realization about the need for political stability is encouraging but regrettably so far this realization is not translating into sanity as the conduct of the politicians and other players is complicating things with the passage of every day.
Sheikh Rashid has rightly pointed out that politics is possible only in a strong state and, therefore, sincere efforts should be made by all sides to sort out their differences through dialogue both within Parliament and outside.
Political differences and clash of interests apart, the political parties should forge consensus on the one-point agenda of how the economy can be managed in an efficient manner without causing more hardships to the people.
