Illusory claims

This refers to the news report ‘Overseas investors pump record $2.58bln in govt debt’ (Jan 26, 2020). By keeping interest rates high, the government wants foreign investors to put dollars into short-term government papers and earn quick money. But this is a high cost and risky approach to securing dollars and building up reserves. Unlike FDI, it does not enhance the country’s production capacity, exports and employment. In fact, both agriculture and manufacturing output are in decline while exports are stagnant. The economy is contracting with rampant inflation and unemployment .

Meanwhile, the external debt has risen to $105 billion. The government’s claim of having stabilized the economy is superficial. Discontent among the people is simmering while the economic planners continue to tout their ‘achievements’.

Arif Majeed

Karachi