THE Ishaq Dar-led Ministry of Finance is bent upon destroying the country`s economy through flawed policies. Exports in July 2015 have registered a massive decline of 17pc over the same month last year.
The imports, on the other hand, show a noticeable increase. While the oil import bill is lower due to decline in international oil prices, the non-oil import bill reflects a sizable rise. Because of huge imbalance in exports and imports, the trade deficit has ballooned. Remittances by overseas Pakistanis are also stagnantin the ñrst month of the fiscal year.
How will the deficit be met? Obviously, by borrowing from the IMF and other donor agencies, as well as by privatisation of family silver. Unabated foreign borrowings are compromising our sovereignty and forcing our policies to be IMF-specific.
Notwithstanding what the finance minister may say, independent economists think that Pakistan`s economy is in deep trouble and a serious economic crisis is brewing up. Pakistan has become dependenton externalsourcesfor survival. The poor state of the economy and excessive dependence on external factors are a recipe for destabilisation.
Strong defence cannot exist without a robust economy.
Since economy and defence are interlinked, it is imperative that we put our economic house in order. The present economic team has failed to reshape the economy and maintain a strong defence.
