ADAM Smith was a Scottish economist and philosopher also known as the ‘Father of Economics’. His book, An Inquiry into the Nature and Causes of the Wealth of Nations, first explained the concept of the ‘invisible hand’. This the man did way back in 1776.

When someone takes an action driven by self interest, there are social factors that benefit the government and society in terms of the tax that it generates for the government and the income distribution by way of job creation in the free market. This, according to Smith, is known as the invisible hand, and it is beneficial for the development of a country. This model of development is indispensable to curtail imports and to increment exports. This invisible hand seems to be staying away from Pakistan’s economy.

If we consider the current national economy, the situation is critical. The US dollar is soaring like never before, and the delay in the release of funds by the International Monetary Fund (IMF) is a threat that is getting more and more serious by the day.

The previous government had frozen the electricity tariff and fuel prices under a relief package for the people. This was against the commitments made to the IMF, which is now demanding it to be reverted. This action will definitely affect the common man, especially the salaried class.

One way out of the tight spot is for the Ministry of Agriculture to be fair to the farmers in order to produce more. This means subsidies on agricultural implements. Also, the produce should not be allowed to be exported or smuggled.

The sitting government needs to formulate economic policies that will not only take care of the deficit, but also stabilise the country’s economy. The government must realise that time is running out, and our options to attract foreign direct investment, promote industrialisation and develop economic zones are getting fewer and fewer.

Taha Soomro
Karachi

Published in Dawn, May 18th, 2022

Opinion

Editorial

Energy inflation
Updated 23 May, 2024

Energy inflation

The widening gap between the haves and have-nots is already tearing apart Pakistan’s social fabric.
Culture of violence
23 May, 2024

Culture of violence

WHILE political differences are part of the democratic process, there can be no justification for such disagreements...
Flooding threats
23 May, 2024

Flooding threats

WITH temperatures in GB and KP forecasted to be four to six degrees higher than normal this week, the threat of...
Bulldozed bill
Updated 22 May, 2024

Bulldozed bill

Where once the party was championing the people and their voices, it is now devising new means to silence them.
Out of the abyss
22 May, 2024

Out of the abyss

ENFORCED disappearances remain a persistent blight on fundamental human rights in the country. Recent exchanges...
Holding Israel accountable
22 May, 2024

Holding Israel accountable

ALTHOUGH the International Criminal Court’s prosecutor wants arrest warrants to be issued for Israel’s prime...