THE recent spike in inflation, along with a catastrophic trade deficit and unhealthy foreign exchange reserves, has brought the national economy to a difficult pass. The common man is experiencing the brunt of these economic troubles, with rising prices and declining purchasing power. Unfortunately, the government’s focus on short-term remedies, such as borrowings, has exacerbated the situation.

The government must adopt a holistic strategy in order to address the economic challenges. It should focus on maintaining budgetary discipline and lowering its reliance on borrowings. It should invest in export-oriented sectors to increase foreign exchange revenues, encourage foreign investment and promote austerity while conducting its business.

Moreover, the government must fight against corruption, and fortify institutions while helping marginalised people to lessen income disparity.

Turly, we do not need shortcuts. We need to have a long-term vision. It is imperative for political leaders to divert their attention towards long-term fixes, and it is our duty as citizens to hold them accountable.

Besides, it is also critical to address the matter of corruption, work towards significant tax reforms to broaden the tax base, and make due investments in the human capital.

While trade and regional cooperation are also essential aspects that can help fortify economic relations with neighb-ouring countries, the private sector must also be given the space to propel economic progress. What we do now will determine the nation’s economic destiny. Will the leaders step up to the plate?

Laraib Rodeni
Karachi

Published in Dawn, November 4th, 2024