EDITORIAL

Some light at the end of tunnel

Though the Opposition has been quite vocal in criticising government for being too soft in negotiations with donors, the facts on the ground do not necessarily vindicate their position. This is with obvious reference to a reported refusal of IMF offer for another PRGF type funding programme. It will be recalled that Finance Minister Shaukat Aziz has been consistently saying that the current programme will be the last for Pakistan. The improvement in economic indicators is quite pronounced and can hardly be disputed on rational grounds. For the sovereignty of the country is largely linked to the economic independence, the incident reflects the fulfilment of the President's promise of regaining economic sovereignty for the country as his prime goal. The laid down principles tilted primarily towards the donors, however, in the past raised hue and cry, which is quite understandable. In spite of the concerted efforts of the government to present the changes in the domain of economic policies over the last one decade as home-grown, those were seldom accepted generally on its face value. That there were certain common interests between Pakistan and IMF can now be accepted after the desired results, and the reforms process has helped Pakistan to manage its macroeconomic affairs in a more prudent manner.
Pakistan has made clear to the donors that it would readily accept the funding if there were no "strings' attached to it. Having heard so many times about rhetoric, the news of such refusals can hardly be accepted as such. The issue will remain under strict public scrutiny, which understandably,
is of vital national importance. It is also necessary and essential that the issue be taken up debated in the Parliament as, in the past too, government denied any strings attached to the funding but the final details proved otherwise.
Viewed in Pakistan's perspective, the need for additional resources is significant and can help Pakistan overcome resource constraints threatening almost all the sectors of the country. The country desperately requires reshaping of the priorities with focus on social sector. This is particularly so with the introduction of democracy in the country. The economic reforms and restoration of macroeconomic stability have kept the spending limited restricting thereby the absorption capacity of the economy. The social sector remains the worst victim and need to be assigned the top priority.
Few years ago, Pakistan was at the verge of default and was expected to announce unilateral moratorium any time. But, with administration of economy gaining momentum, Pakistan has been successful in accumulating unprecedented foreign exchange reserves which has helped in restoring faith in Pakistan's ability to meet debt obligations. It would, however be advisable to adopt an inward looking approach, which alone can help meet the challenges facing on the domestic front. The compulsion of plugging the gap between income and expenditure has pushed the economy to stagnation, resulting in widespread unemployment and poverty. This alienation among the general public has widened the wedge between the government and masses. It is, therefore, needed that the focus of economic decision making be changed which is very much possible with the regained economic sovereignty and some decision be taken to change the lot of the common man. The involvement of the masses at large will enhance the general acceptability of the government policy and make them sustainable in broader terms.