Tuesday July 05, 2022

Stability first

May 25, 2022

Political and economic stability are closely intertwined. A stable political environment gives business owners the confidence to invest, while political uncertainties deter investors from investing and donor agencies from extending loans. According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Pakistan is among 12 countries that are predicted to be hit hard economically due to the recent war in Ukraine. This will put a significant strain on our already depleting foreign exchange reserves, and it is estimated that the available reserves will hardly cover the import bill for the next seven weeks.

Making matters worse, the political temperature after the ouster of former prime minister Imran Khan has risen so much that it has almost led to economic stagnation. The value of the rupee against the dollar has sunk to a historic low, leading to an increase in prices of essential commodities. It is time all political parties and powerful quarters kept their vested interests aside and diligently worked to avoid the country from plunging into bankruptcy, as happened with Sri Lanka. Their failure to act will hurt the country’s sovereignty, apart from pushing millions of people below the poverty line.

Asad Aziz