Doom and gloom

This letter refers to the news report ‘Economy to grow by 2-2.5 per cent in FY 24, says Shamshad’ (January 21, 2024). The caretaker finance minister seems to be upbeat about the economy but certain key economic indicators contradict this sentiment. 

The budget deficit, circular debt, and government borrowing are all unsustainably large. Growth is muted, exports remain sluggish, and remittances began declining towards the end of last year. Millions of children are out of school, jobs are growing scarce and a larger segment of the population has fallen below the poverty line.

More and more people are looking abroad for better prospects in the wake of dwindling employment opportunities and unbearable price/tariff hikes. There appears to be no silver-lining at the end of the horizon and the country will remain on the crutches of the IMF for years to come.

Arif Majeed

Karachi