Economic crisis, what is the solution?
Former Chairman FBR Shabar Zaidi's remarks on the economic situation of the country, even if it is not agreed that the country is going bankrupt, then
Even if it is not agreed with the comment of former chairman FBR Shabar Zaidi on the economic situation of the country that the country is going bankrupt, the fact remains that our economy is on the brink of danger. The foreign debt of 11 115 billion, the trade deficit which exceeded 20 20 billion in the first five months of the current financial year and the historic fall in the exchange rate of the rupee which has decreased by 30.5% in the last three years are the mainstays of the country's economic structure. There are problems. More loans are being taken to pay interest on loans while the growing trade deficit is not allowing the rupee to recover. The existence of the country's economy depends on the activities of industry and production, but despite the most important geographical position in the region and abundant mineral, marine, geographical resources, Pakistan's exports are not moving beyond the textile sector. The option of making a place in the ever expanding global food market is also open for an agricultural country, but our claim to be an agricultural country is just to say the least because we have to import everything from wheat to pulses and fresh vegetables. No rocket science needed to know. So the main reason for this is the use of agricultural land for commercial and industrial purposes. Then, while evaluating rural and urban life, make it clear that urban life is far better than rural life, with a large rural population moving towards cities. Causes However, realizing the importance of our agriculture, it was important not only to take advantage of the new agricultural inventions of the developed or conquered countries, but also to encourage the research work of agricultural education institutions. ۔ But here the tide has turned. Leave it at that, but look at what kind of problems our government is still creating for the farmers which the farmers did not even imagine in the past. You will see long rows of furlongs for fodder and seeds. That is to say, it has a large share in our trade deficit. During the last financial year, more than one billion dollars was spent on importing wheat and sugar alone. The edible oil import bill was more than ارب 2.5 billion, while more than کروڑ 700 million was spent on pulses. Despite the vast agricultural area, mild climate and agricultural production tradition, the government does not seem interested in food self-sufficiency measures. Textiles are the country's main export sector, but due to the cotton production crisis, cotton imports were close to سوا 2 billion last year. This is not the case in the export sector. During the first 11 months of the last financial year, exports increased by only 14%. Although the growth rate of exports has been slightly better this year, the extraordinary increase in imports has also exacerbated this increase in exports. The effects of this economic situation are shifting below the blackout, in the form of inflation and economic uncertainty. With 11.5 per cent inflation, the beloved country holds the highest position in the region. The rate is only 4.95% in India, 5.7% in Bangladesh and 9% in Sri Lanka. Despite this, our Minister Batdabir says that Pakistan is the cheapest country in all of Asia, only tea is expensive here, everything else is cheap.
Reputable institutions and portals with economic records of countries including the World Bank do not agree with this claim of the Federal Minister. Just as closing one's eyes does not remove the danger, so denying the economic crisis does not reduce the problems. When the common man goes out for shopping, he knows the flow of flour and pulses. The effects of the most stringent conditions of the recent ارب 1 billion installment from the IMF have led to a sharp rise in inflation. The installment has been approved recently, but the homework for the approval was done earlier this year, with a steady increase in electricity prices, a steady reduction in subsidies on essentials and a budget for this year. This is clear from the imposition of more taxes. But what has happened should be considered as a trailer only because the real movie is yet to come in the form of a mini budget. However, this is still an open secret as approval of the mini-budget proposal from the relevant forums is yet to come. However, what the government officials say in this regard should be considered final and its implications are clear that the burden of more than Rs 300 billion will fall only in the case of elimination of GST exemption or increase in rates. ۔ To get out of this situation, or to put it another way, Pakistan will have to change its priorities in order to achieve equality with other countries in the region. Among the measures proposed for this are serious measures to increase exports, encourage small and medium enterprises, industry and exporters, and reduce trade deficits. When the current government came to power, it was determined to reduce imports. Efforts were also made for this, even saying that setting the value of the dollar according to the market, ie the depreciation of the rupee, would discourage imports when the prices of imported goods would go up. But the figures, which show an increase in imports, show that the government's thinking has not been logically justified because imports include not only luxury goods but also a large part of the daily necessities. But domestic production does not meet this need. If self-sufficiency in the production of edible oil, wheat, sugar and pulses is achieved, tens of billions of dollars can be saved annually in imports.
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