THIS refers to the news item ‘Ministry concedes economy faces inflationary, external pressures’ (Nov 30). The government is set to announce a mini-budget to comply with the International Monetary Fund’s (IMF) conditions and a bout of hyperinflation followed by a deep recession may well be just around the corner. The economic difficulties continue to pile up each day, which is only underlined by the sigh of relief recently let out by government leaders on the imminent loan flowing in from Saudi Arabia, albeit with unpleasant strings attached, as rightly noted in the editorial ‘Saudi conditions’ (Nov 30).
From a holistic perspective, the national economy will continue to be in tatters as long as the two key positions — finance ministry and the head of the central bank — are assigned to those who lack the knowledge of managing the country’s economic affairs.
These two critical portfolios shape a country’s economic, fiscal, monetary and external trade policies and determine the business model on which the state is supposed to operate.
It is up to everyone to decide whether those positions are in good hands or not. But, for me, sometimes it becomes difficult to decide whether our economy is being mismanaged or not managed at all.
An overblown narrative of bravery, valour and sacrifice does not enthral the people any longer, especially at a time of galloping inflation, the dollar hitting new highs every other day, a widening trade deficit, sliding foreign reserves, and other worsening economic indicators.
It is high time we built a strong knowledge-based economy to ensure security and protect the nation’s sovereignty. Such an economy can be our safest weapon, even better than our nuclear bombs which, many would argue, need more security than they provide.
Arif Majeed
Karachi
Published in Dawn, December 9th, 2021
