The Paris Club of creditor nations, China and the International Monetary Fund (IMF) must hold debt-restructuring talks in order to help Pakistan emerge from current economic catastrophe, Financial Times has stated in a report.
The government’s abolition of the dollar restriction has resulted in a significant depreciation of the rupee and frighteningly low foreign exchange reserves for the country. Public debt, which accounts for $270 billion or 79 percent of GDP is another significant issue.
Pakistan is currently dealing with the most difficult combination of problems in contemporary times. In a nation already riven by governmental ineptitude, a faltering economy, the destruction brought on by climate change and a terrorist strike last week claimed 100 lives, Financial Times report has said.
Pakistan, together with its creditors in the west and China are faced with a difficult set of options since prolonged instability in a nuclear-armed nation on a geopolitical fault line serves no one’s interests. The political and military leaders of the nation have presided over decades of chaos, fraud and poor governance.
There is nothing to distinguish the major political parties’ policies as they continue to battle it out. Instead of making significant attempts to improve Pakistan’s situation elections this year will likely be used as an excuse for another round of destructive fighting.
They would encounter individuals who had little trust in the ability of the governing elite to make their plight any better if they ventured outside the bubble of Islamabad. Politicians must start prioritizing individuals over parties.