Muhammad Nadeem Bhatti
Pakistan’s stability increasingly depends on the outcome of an ever-worsening economic crisis. Among skyrocketing inflation, political conflicts, and surging terrorism, the country is facing the risk of default due to its massive external debt obligations. This burden has been exacerbated by the derailment of the $6.5 billion IMF program Pakistan entered in 2019, as the international lender is unsatisfied with Pakistan’s commitment to reform and ability to arrange for funds to meet external financing requirements. Troublingly, the country’s official foreign exchange reserves are hovering around $4 billion, insufficient to finance even a one-month import bill. In addition, Pakistan now finds itself unable to repay loans used to fund projects, including the CPEC.
Sadly, a large number of Pakistanis, many of them educated middle-class, are leaving to find better futures, including some 800,000 people in 2022.
These departures will increasingly involve more desperate means – as shown by the more than 300 Pakistanis who died in the recent refugee boat disaster off Greece. Australia, too, may see a surge in arrivals from Pakistan. Unfortunately, our country has an ever-decreasing number of friends to help it out of the crisis. Washington has little interest in bailing Islamabad (and its Chinese creditors) out of the hole that it has dug for itself. Pakistan’s role in the fall of Kabul is well remembered, and US aid has slowed to a trickle. So, the Islamic State has to do something of its own to get out of this economic crisis.
Recently, the chief of Army Staff (General Asim Munir) has signaled toward the country’s bright future in view of the upcoming huge foreign investments in various sectors. In a four-hour meeting with some 50 businessmen on Saturday, the army chief informed that during his recent visit to Saudi Arabia, he took Prince Mohammad Bin Salman into account that he had not arrived to ask KSA for a $1-2 billion investment into Pakistan. Moreover, the prince assured the chief of investing $25bn in the Islamic Republic of Pakistan under the Special Investment Facilitation Council (SIFC) aimed at attracting investment in the agriculture sector by offering land and ensuring exports. In addition, he also hinted at not going towards the IMF for any new program as the fund does not give any permission to work freely, and an increase in power rates was also a part of the program.
In the meeting, there were also discussions on gas, power, export, corruption, and bureaucracy’s role. On smuggling of Iranian petrol, he asked the corps commander that the Iranian petrol should not reach Karachi. The issues relating to corruption in Sindh, the culture of tax evasion, privatization of sick SOEs, the return of illegal Afghani people to their homeland, and non-filing of tax returns also came up in the discussion. All the businessmen in the meeting termed it highly encouraging, which would yield positive results when the country is facing deep sugar and wheat crises and soaring dollar value against the rupee. Moreover, it will give a positive impression that the institutions and business community are on the same page and share similar views regarding the economic situation.
General Asim Munir looks firm and optimistic about bringing huge foreign investment from other Muslim countries, and it will certainly make a difference in economic indicators. President of the Lahore Chamber of Commerce & Industry Kashif Anwar, alongside prominent business figures, also attended the meeting and discussed the country’s economic situation.
Also, the Chief Minister of Punjab (Mr. Mohsin Naqvi) was present at the meeting. General Asim Munir highlighted the pivotal role of the Special Investment Facilitation Council (SIFC), emphasizing its potential to attract substantial investments of up to 100 billion dollars from countries such as Saudi Arabia, the UAE, Kuwait, and others. And to strengthen economic decision-making, he revealed the formation of task forces focused on economic matters and different sectors. In the meeting, The army chief said that it is crucial to make the non-filer economy into filer economy. And in this regard, Mahmood-ul-Hassan Jafri (Chief Tax Commissioner) is the best person who can do this task efficiently.
General Asim Munir looked positive during the entire time. He is putting all his efforts into getting Pakistan some investments at this crucial time and taking the country out of this mess.
The Chief assured that money exchanges would be brought under the purview of taxation, fostering transparency in dollar exchange and inter-bank rates. Also, the gathering exemplified the shared dedication of the business community and the military leadership to work collaboratively in addressing pressing economic challenges and propelling the nation toward growth. As Pakistan continues to navigate economic complexities, this constructive meeting signifies a promising step toward finding practical solutions and fostering economic prosperity. Also, it is the need of the hour that more such steps should be taken, and sessions like that must be arranged to make a better economic strategy for our beloved country.
I believe now is the time that all law enforcement agencies, including the police, FIA, NAB, etc., should stop corruption, money laundering, and hundi. Moreover, the government should immediately stop printing Rs.5000 notes, and ban it completely as people who are money laundering experts and tax defaulters, will find it difficult to hide their cash. And ultimately, they may return all the illegal capital or invest in some manufacturing or trading business. Hopefully, Pakistan will soon come out of this mess, pay all its debts, and not have to rely on the IMF anymore.
And for that, it is crucial that every Pakistani citizen should pay their taxes truthfully and keep themselves abstain from all illegal activities.
