CHALLENGES ahead for the upcoming coalition government, led by Mian Muhammad Shehbaz Sharif, are undeniably formidable. Addressing these complex issues will require careful and skilful navigation. While the new government may possess experienced leadership unlike its predecessor, the true measure of its success will only be evident as it embarks on implementing its developmental agenda and fulfilling its manifesto commitments. With vast experience in managing the country’s affairs, the government’s ability to effectively manage these challenges remains optimistic. However, it is only through action and implementation that the government’s true effectiveness can be gauged.
That Pakistan’s economy is immensely overburdened by both foreign and domestic debt is an open secret. According to the State Bank of Pakistan (SBP), the country’s total external debt stood at US$ 131,159 in the fourth quarter of 2023. The domestic debt of Pakistan has been equally unbridled. As reported in the media, excluding liabilities, the total debt of the country in FY23 stood at US$ 72.991 trillion. The scenario vis-à-vis the current foreign exchange reserves of the country is not encouraging either. According to the SBP, Liquid Foreign Exchange Reserves (LFR) stood at US$ 13.26 billion as of February 24, 2024 — net reserves of US$ 7,949.65 with the SBP and net reserves of US$ 5,088.9 with the banks.
The economic situation of the country is alarming indeed! In view of the foregoing mind-boggling financial situation, the government would have no choice but to focus its undivided attention on dealing with the ever-burgeoning economic conundrum of the country on a war-footing. In fact, the economy must mandatorily be on top of its agenda of national priorities.
In the realm of economy, the first and foremost task of the upcoming government would be to deal with the IMF. Cash-strapped Pakistan, though very unfortunate, badly needs IMF support to overcome its dire financial straits. It would have to immediately get down to negotiations with the IMF, and make all out endeavours to get its next tranche of US$ 700 million released. As reported in the media, the Board of the Washington-based International Monetary Fund is all set to deliberate and potentially grant final approval for the disbursement of the next US$ 700 million tranche for Pakistan, under the existing US$ 3 billion Stand-By Arrangement (SBA).
Yet another profoundly critical economic issue that the coalition government will have to judiciously and industriously deal with is the galloping inflation in the economy. The people of Pakistan have never been so noxiously hit by inflation before. In fact, this is the worst inflation they have ever seen in the over seven and a half decades-old history of the country. In its January 2024 meeting, the State Bank of Pakistan had forecast the average inflation in the economy to be 23%-25%. The existing inflation has devastatingly affected the middle and low-income classes of the population. It has completely eroded their purchasing power.
The economic plight of the people is further worsened by the menace of poverty. Dealing with this menace is yet another serious challenge that the government would confront in the years to come. Poverty alleviation is a critical issue as roughly 24% of the population of Pakistan is said to be still living under profoundly precarious conditions. It would be imperative for the government to pull the masses out of poverty if it is to ensure economic and social well-being of the country. Poverty could be eradicated either directly through creating employment opportunities or indirectly through provision of basic health and education facilities to the people. Unquestionably, this vital area also merits serious and urgent attention of the government.
Another significant area that the government would need to aptly work on is rebuilding the country’s tarnished image in the comity of respected world nations and making sustained efforts to strengthen its external relations. That Pakistan’s image stands awfully tarnished in the world today is a sad truth. How and why we have attained this unfortunate repute does not need any elaboration. It should suffice to say that all this has happened due to the wrongdoings and ill-intent of a particular segment of our society. We, as a nation, have bitterly failed to appreciate the value of independence. Even after 76 years of independence, we have not been able to appreciate the fact that whatever we have attained in our lives today is because of Pakistan. The day we realize this hard truth, we would resolve all our differences amicably and work collectively and concertedly to bring unparalleled progress and prosperity to Pakistan.
The government must prioritize strengthening its relationship with Pakistan’s media, acknowledging its role as the fourth pillar of the State. In this age of media revolution, the importance of the media as a watchdog of political democracy cannot be overstated. Media should be granted freedom to effectively fulfil its watchdog role, but with the expectation of acting reasonably and responsibly. Unfortunately, contemporary media often prioritizes sensationalism over objectivity, seeking to boost viewership and channel reputation. It’s crucial for the media to maintain objectivity and provide evidence-backed reporting, particularly on government-related issues. Constructive criticism should be encouraged, aimed at highlighting wrongdoings or lapses that could compromise the integrity of the nation and its people. Only through responsible and objective journalism can the media truly serve the interests of the public and contribute to a healthy democracy.
To sum up, success of the coalition government in all spheres of governance would largely depend on setting its priorities right, and, once set, adroitly and methodically working towards the implementation of these priorities. In addition, its success would also depend on Prime Minister Shehbaz Sharif and his cohorts’ ingenuity in managing cordial working relationship with the coalition partners, and mutually respectful relationship with the members of the opposition in Parliament. Though establishment of good relations with the latter would, for obvious reasons, be a little too difficult still sincere and continued efforts should be made to take them along particularly in matters of supreme national interest.
—The writer is a columnist and analyst based in Islamabad-Pakistan.
Email: geniousfazal@hotmail.com
views expressed are writer’s own.
