Bad decision

Pakistan faces serious economic challenges, foremost being the current account deficit. To avoid an external default situation, the prime minister had to decide on either of the two options: 1) import compression of $8-9 billion by banning import of luxury/non-essential goods through an executive order; and 2) allow market forces to control the economic fundamentals – free floating of the rupee, hike in interest rate, raise in utilities, slash in development expenditure, cut in human development budget. The government chose the second option which is catastrophic. Even the strongest economies of the world institute control on various levers of economy, rather than giving complete sway to market forces. Had this not been the case, there would not have been the current trade war between the US and China.

Owing to poor decision-making, the economy stands devastated and the country has gone back economically by 20-25 years. The Pakistani rupee is weaker than the currencies of Afghanistan, Nepal and even Bhutan.

Arif Majeed ( Karachi )