Economy: injustice & imbalance

Published Jan 03, 2013 03:42am

A STRONG currency represents a strong economy and vice versa. Pakistan’s currency has promptly been depreciating since the 1970s.

In the year 1970, Pakistani Rs10 or less was equal to a US dollar. In December last Rs98 was equal to a dollar.

It is expected that very soon it will cross two digits and further deteriorate the economy. The question arises: why is Pakistani currency quickly depreciating?

Why are our economic woes increasing day by day? Why is the rate of poverty increasing? Why the standard of living of the poor in Pakistan is getting worse instead of increasing?

The reply of all these questions can be summed up into two words ‘injustice’ and ‘imbalance’ that is leading the economic turmoil: injustice in the way of economic decisions and imbalance in the way of public expenditure.

These two core deficiencies are becoming the cause of economic issues such as fiscal problem, lack of generation of tax revenues, slippages on domestic debt leading to crowding out of private sector credit needs, lack of dams and other power-generating gears leading to acute shortage of power and shortage of production, as well as increasing unemployment and inflation.

Huge imports are creating a weak external account position, trade deficit and causing reduction in foreign exchange reserves.

MANAZIRUL HAQ Karachi

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