THE federal finance minister recently met and asked his American counterpart to provide Pakistan with $10 billion under the Exchange Stabilisation Support Facility to help strengthen the national economy. If I recall it correctly, this recipe for kickstarting economic growth has been used twice in the past, but it failed each time; once after the Soviet-Afghan war, and, then in the wake of the infamous 9/11 attacks.

In both these periods, subsequent to years 1979 and 2001, economic growth was achieved with dollars borrowed and received as geopolitical rent. As soon as the flow dried up, the economic growth stalled. I am struggling to understand why our rulers and economic managers are preparing to use yet again the failed recipe for economic growth which can only add to the overall debt burden.

The time has come for Pakistan to go through structural economic reforms to lay down the foundation of real economic growth for the future. Such reforms are, of course, painful, but they represent the only solution to our economic ills.

Fundamental economic reforms will go a long way towards restoring the confidence of investors and overseas Pakistanis, and dollars might start trickling into Pakistan. It is interesting to think that there are around 10 million overseas Pakistanis, and if each of them sends $1,000 for investment, it will add up to $10 billion, which is just the amount the minister has asked the United States to dole out for stabilisation.

Ejaz Ahmad Magoon
Dubai, UAE

Published in Dawn, August 16th, 2026