KARACHI, Jan 22: The Brussels-based International Crisis Group (ICG) has cautioned that simply bailing Pakistan out of yet another self-induced debt crisis or offering generous budget support will do little to put the country on a more stable path.

In its report, the ICG has stressed that the large-scale effort to address the debt crisis must be accompanied by measures to put in place “a more accountable and open market system or else Pakistan will only repeat the cycle.”

The report on “Afghanistan and Central Asia: priorities for reconstruction and development” warns that “there is a real danger that current strategic dynamics will encourage the government to believe that it can be actually rewarded for its long track record of misadventure.”

The International Crisis Group is a private multinational organization committed to strengthening the international community to anticipate, understand and act to prevent and contain conflict.

Former President of Finland Martti Ahtisaari and former foreign minister of Australia Gareth Evans are chairman and president of the ICG respectively. The ICG board members include former prime minister of India I.K. Gujral and ex-PM of Belgium Mr Mark Eyskens, philosopher George Soros and a host of former foreign ministers, special advisor to the United Nations Secretary- General Mohamed Sahnoun, distinguished diplomats, representatives of think tanks and journalists.

It has advocacy offices in Washington, New York and Paris and operates field projects in 19 crisis-affected countries and regions across four continents.

“Pakistan faces a series of stern challenges to undo years of bad policy choices. The country has considerable human and financial capital but has squandered it for decades. A stagnant economy, with intelligence services that have long supported Islamic extremists, military rule, continuing disputes with India, especially over Kashmir, a collapsed education system and the flight of its technocratic class who have left Pakistan as a country in the real danger of itself slipping towards chaos,” the ICG report notes.

Completed on Nov 27, 2001, the report stresses that the international community’s challenge is to co-ordinate and deliver its assistance in a way that actually helps secure change within a government “that has long been hostile to increased transparency and the broader agenda of reform.”

Several areas, the report says, will need particular attention. “Support for Pakistan must secure substantial changes in the country’s fiscal structures and it may be necessary to create an entirely new tax structure that underpins a more secure Pakistani state. This is only likely to be achieved with substantial international help to prop up an interim social safety net that can cushion the blow to the people, particularly in the healthcare and education,” the report adds.

Similarly, concerted and co-ordinated efforts by all donors are necessary to pressure Pakistan to clean up the banking sector. Money laundering has to be dealt with systematically to cut funds to extremist groups.

The two priorities set by the ICG are: Overhaul of taxation system to underpin weak institutions and setting up of secular schools to reduce the influence of extremist madaris and improve living standards.