Encouraged by the recent inflow of over $2 billion into short-term government papers, the State Bank has kept the key interest rate unchanged in the recent monetary policy announcement. Business was expecting a cut in the interest rate to boost domestic investment which is rapidly disappearing. Entrepreneurs are considering making investment in other countries including Bangladesh, where the investment climate is friendlier. Dollar inflows into government papers do not strengthen the economy. It is a superficial and stop-gap arrangement for augmenting reserves and reducing the current account deficit. Its long-term impact is devastating on the economy. Other than this avenue, the government team does not have a viable plan to avert the slowdown and create self sustaining resilience in the economy, which is quickly shrinking.
The incumbent CJP is taking suo-motu notice on several issues of public interest and importance. The economy is a key area where our political sovereignty is at stake. One would request the CJP to take suo-motu notice of the deteriorating state of the economy that is resulting in unemployment, inflation, shut down of plants/businesses and an increased debt burden. If the downslide is not swiftly arrested, it can lead to more street crimes, artificial crisis by influential groups in and outside the government and political and social upheaval.
Arshad M Khawaja
Karachi
