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The lack of resolve exhibited by the Government is also evident from the fact that the Supreme Court of Pakistan has been forced into taking Executive level decisions that should have been within the ambit of the Government. This again demonstrates that the Government has accepted its inability to enforce its writ and as a result a vacuum has been created that is being filled by another State Institution
The mistakes of the past are being repeated according to Dr. Mian. The reliance has continued to be on external borrowings, with IMF support and maintenance of an over-valued Rupee which severely hampered exports. Today Pakistan’s debt has the lowest maturity among peer countries. As a result, inflows continue to be short-term with maturities in the 3 -12 month range. Of the foreign investment of US$2.25 Billion only US$24 Million went towards the longer term Pakistan Investment Bonds (PIBs)
The unprecedented hikes in interest rates, devaluation and ongoing additional surcharges have unleashed a spike in inflation that has severely eroded the purchasing power of the people, and led to the loss of employment opportunities. The dream of generating millions of jobs transitioned into a reality of rampant job losses.
Unnecessary controversies and legal issues have been created and the government has become embroiled in judicial battles, which could have been easily avoided. The much-criticized Circular Debt has raised its ugly head yet again and at Rs.1.69 Trillion is posing a considerable threat
No amount of distraction can hide the figures that indicate India’s economic state. Growth is averaging 5% and projected to go lower. The policies that were to deliver failed miserably. People are still reeling from the impact of the disastrous demonetization policy and the consumer tax fiasco.
The government had been crying hoarse that it had stabilized the economy and good things would happen. The economists, the media, the analysts and the street opinion solicited by roaming media people did not agree. Now Moody’s Investors Service (“Moody’s”) has changed Pakistan’s outlook from negative to stable affirming Pakistan’s local and foreign currency long-term issuer and senior unsecured debt ratings at B3.
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