THIS refers to the news report `Economy faces serious challenges: SBP` (Nov 18, Business). In a blunt and unusual criticism, the State Bank ofPakistanhasconveyed aveiled warning to the government of the looming economic crisis in its 2015-16 report released after more than four months of the end ofthelastñscalyear.
The report says: `Pakistan has been facing serious challenges, including low savings and investment levels, falling exports,poorspending on the socialsector and reliance of the tax structure on stopgap measures that create distortions in the economy`.
The SBP report is an indictment of the government`s economic policies which fosterincreased dependence on external sources to support the economy. All key economic indicators are showing an adverse trend while the country is entrapped in a vicious debttrap.Thefears ofindependent economists appear to be coming true.
The government needs to formulate short-term and long-term measures to pull the country out of the economic crisis. The past eight years of civilian transition has been an economic disaster.
