Masses are anguished, as evident from recent protests across the country. Inflation especially the unprecedented surge in cost of electricity, is testing the limits of patience. The rate of petrol and the dollar against rupee, both, have crossed the figure of 300. As a result, cost of living is moving upward with no swift solution in sight. Public reaction is accumulative outcome of unaffordable inflation, stereotype response and unchanged pattern of inaction from ruling quarters. A country like Pakistan, having more than 24 million population must not be left in troubled waters without appropriate navigation to set the correct course. Violence is the most irresponsible way of venting out the anger, which would obviously further spoil the damage control efforts. The application of collective wisdom is the right call in such testing times.
Public Perspective: Major Concerns & Expectations
Common masses are viewing existing political crisis as the outcome of multiple interlinked aspects as reflected in succeeding lines: –
One, Public generally believes that the incompetence of successive ruling regimes is a major factor behind existing economic deterioration.
Two: Mistrust on political cadre is growing gradually due to the inbuilt inability to solve the issues affecting the lives of the common masses in health, education , justice and governance domains.
Three, while criticizing the government on any issue, citizens frequently refer to corruption stories tagged to the rivals by various political leaders. Recent issues of economic deterioration and inflation are no exceptions to this public discourse.
Fourth, masses view the role of the IMF with a lot of suspicions amid rising inflation and the application of heavy taxes. As per public perception, policies dictated through tough conditions by the IMF have contributed enormously in destroying economic stability.
Five, there is a strong perception in the masses that the ill-timed VONC move of PDM enormously expedited the process of economic deterioration. Larger chaos triggered with political confrontation between PDM and PTI proved detrimental to the revival of financial stability.
Six, traders and exporters are deeply affected by uncontrollable devaluation of currency and the negative fluctuation of PSX. Rising production costs amid power price hikes snatched the ability of local industrialists to compete in the international market. Likewise, importers are worried about difficulties in opening the letters of credit.
Seven, all segments of society are urging the government to rapidly explore the relief modalities in tangible terms by reducing energy cost, tax relaxations, provision of subsidized or cheaper basic food items and creation of employment opportunities.
How Experts View the Economic Crisis?
Economic and financial matters experts affiliated with credible international institutions have been repeatedly pointing out the policy gaps affecting the economy of Pakistan. A number of reports and reviews published by Bloomberg, Economist, Moodys, Fitch-rating, IMF & World Bank had highlighted undermentioned grey areas awaiting corrective measures: –
One: Over-reliance on foreign borrowings with no clear payback strategy.
Two: Wide gap between exports and imports.
Three: Flawed taxation system having the least capability to detect huge evasions
Four: Political instability directly affecting the Foreign Direct Investments (FDIs)
Five: Poor economic management and the tendency of imposing unsustainable politicized subsidies.
Six: Negligent approach on Industrialization, thereby shrinking the export potentials as compared to swallowing import numbers.
Seven: Flawed IPP agreements and meaningful reluctance in exploring the options for cheap electricity production, i.e. windmill , hydel and solar
Violent Dimension of Protests: Directionless & Destructive!
Protest is a basic right granted by the constitutions, and its peaceful manifestation should not be a matter of grave concern for the government. However, politicized exploitation of a national crisis to incite violence or insurrection must be viewed in the correct perspective by relating it with the uncompromising necessity to establish the writ of the state. Though public anxiety and distress over unaffordable inflation is not baseless, however, the touch of violence in protests would transform the whole activity into unlawful event. The attention of state will also divert from relief exploration to riot management. Hostile elements are all set to push Pakistan in a deeper crisis by exploiting the issues of economic deterioration and terrorism resurgence.
Way Forward: The Right Course of Actions
Denial is not an option. All stakeholders should first admit the existence of an economic crisis in all its entirety. It is an established fact that the prolonged negligent inaction of past ruling regimes has brought the country to the present miserable state of affairs. Collective wisdom must be applied to revive the economy by keeping in consideration the following suggestions-:
One: Past follies must be identified dispassionately.
Two: economic and energy crises should be tackled as a joint national challenge without wasting efforts on blame game
Three: Ruling quarters should stand with common masses in solidarity and take the lead in sharing the burden of the crisis.
Four: Experts with zero political biases must be engaged for long-term and short-term structural reforms
Five: Strong advocacy is needed to dispel the element of violence in public protests. The government should allocate maximum efforts to positively divert public anger towards constructive revival measures.
