Economic Policy of Pakistan Essay

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Economic policy: Short of ideas on pressing issues By Shahbaz Rana Published: May 3, 2013 Share this article Print this page Email In the upcoming fiscal year – starting this July – a debt of $6.5 billion needs to be paid back, including $3.6 billion to the IMF. PHOTO: FILE ISLAMABAD: In their manifestos, mainstream political parties have addressed economic reforms at great length. However, they failed to provide solutions to the nation’s most telling economic problem – its debt crisis. The external debt crisis is at a precarious state as reserves have started to deplete rapidly. As of April 12, the central bank’s reserves stood at $6.64 billion. By excluding over $2.6 billion which the State Bank pledged in forwarding bookings for imports, the actual reserves stand at $4 billion – not sufficient for even a month long import bill. With only $4 billion reserves in hand, Pakistan has to return $1.5 billion to international creditors within two months including $850 million to the IMF. In the upcoming fiscal year – starting this July – a debt of $6.5 billion needs to be paid back, including $3.6 billion to the IMF Within days, the incoming government would have to sign a programme with the International Monetary Fund (IMF) to avoid going into default, Chairman Research Institute of Islamic Banking and Finance Dr Shahid Hasan Siddiqui observed. Under such circumstances, party manifestos do not offer a response to the challenge, Dr Shahid said, adding that the manifestos are not aligned to ground realities. PTI If voted to power, PTI will declare a national emergency on energy shortage, corruption, poor governance, uncontrolled expenditures and declining revenues. The party also plans to reduce Public Sector Enterprises (PSEs) losses by corporatising railway ministry and removing PIA from the Ministry of Defence’s control. PTI plans to cut

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