Dar’s call for divine intervention to save the country’s battered economy is an admission of failure

Lahore: Finance Minister Ishaq Dar’s recent statement where he has sought ‘divine intervention’ for taking the country out of the prevailing chaos has put a serious question mark on the economic policies of the incumbent government and its capacity to bring stability to the country.

Economists, business community and public at large believe that Ishaq Dar’s statement is indicative of his frustration and an admission of the government and his own failure to put the fragile economy on the right track.

Speaking at a ceremony in the federal capital last week, Dar implicitly accepted the government’s failure by pinning all hopes on Allah Almighty for taking Pakistan out of the prevailing economic mess.

“Pakistan is the only country founded in the name of Islam and Allah Almighty is responsible for its development and prosperity”, he said, adding that he had full faith that Pakistan would progress because it was created in the name of Islam.

“If Allah can create Pakistan, then He can also protect, develop, and make it prosper”, he said, adding that the incumbent government was working day and night to improve the situation ahead of the elections.

Former Finance Minister Miftah Ismail had also criticised the economic policies of his successor which according to him has caused huge losses to the public exchequer. He pointed out that the policy of controlling the dollar exchange rate had caused a loss of 1.5 to 2 billion dollars to the public exchequer during the last four months.

The present economic team of Prime Minister Shehbaz Sharif-led coalition government has returned to the free floating exchange rate policy which has resulted in record rupee devaluation within days.

Miftah believes that the present economic team is reverting to the old policy but after causing huge damages in the shape of losing foreign exchange, unprecedented inflation and unemployment. The government is now holding talks with the International Monetary Fund team for settlement of conditions for the revival of the global lending agency’s program.

While everything, indeed, is dependent on the will of Allah Almighty, the economists and common people raise a pertinent question that how the finance minister of the country can exonerate himself from the responsibilities of managing the economic affairs and not admit the abject failure of his policies that have brought the country on the verge of bankruptcy.

“Tell me, what is the duty of the government and its financial team when every responsibility is passed on to the Allah Almighty?”leading economist Muzammal Aslam asked. “I don’t know what kind of divine intervention Mr Dar is waiting for, whether it is war so that Pakistan can secure dollars or a COVID-19 like devastation for reducing the prices of commodities? The third one may be another devastating floods in the country that could boost the increasing dollar inflow.” The truth is that the government has failed to extract enough money in the name of rehabilitation of flood affected people and areas.”

“Everybody knows that the present regime is a big failure. Mr Dar has also accepted his failure. Even his predecessor is blaming him for all the chaos. The government should go home as replacing the finance minister will also not work in this situation”, he said. “Only a stable government which is formed through free and fair general elections can take the country out of prevailing crisis.

“Increasing the tenure or inducting a set-up of technocrats cannot boost the economy. Such adventure will only worsen the political and economic instability,” said Muzammil and added that neither the constitution nor the prevailing situation allow such adventures. He reiterated that a political government installed for five years can take bold decisions and attract local and foreign investment.

Commenting on Dar’s statement, President Lahore Chamber of Commerce and Industry Kashif Anwar said, “No doubt Allah is all-powerful and we are His subjects. But we need to open our eyes and realise the ground realities. We are facing the crisis due to lack of direction and accountability. Sending a finance minister home is not the solution. Increase in term of the present regime, technocrats set up, general elections or polls in two federating units will not help getting the desired results.”

He stressed the need of devising and implementing a consensus charter of economy for taking the country out of this really tough situation.

“Political instability is harming the economy. Leadership from both sides of the political divide should sit together for reaching a consensus economic agenda before elections. This consensus plan should be implemented in letter and spirit for taking the country out of the prevailing mess and putting it on the path of a sustainable economic growth,” said Kashif while urging people from all walks of life to boycott elections if scheduled before signing a charter of economy.

“Seeking divine help for resolution of any problem should be part of a normal routine. But as Muslims, we should fulfill our own responsibly first and make our best efforts and then leave the results on the will of the Almighty.”

“Replacing the finance minister or sending the government home will not work until all the stakeholders sit together and devise mechanism for bringing own house in order. Huge current account deficit and fast depleting foreign exchange reserves have put the country on the verge of default. There is a need to take short and long term measures for taking the country out of crisis and putting the economy on the right track,” said Awais Saeed Piracha, chief executive officer of Trinity Enterprises, a major importer of variety of tyres for two-to four-wheelers, trucks, buses and industrial and agricultural machinery.

“Yes, we are facing a tough situation. We will continue doing the same unless we develop a consensus on a long term economic plan. Political stability and continuity of policies are essential for sustainable economic growth”, he said, adding that only a stable government having mandate of serving for five years can take the country out of prevailing scenario.

“We need a stable government for encouraging local and foreign direct investment,” he said, adding that neither local nor foreign investors can trust a regime which is there for a limited time period.

“Reducing trade deficit and building foreign exchange reserves are essential for sustainable economic growth. Import substitution through local production, value addition and exploring new export destinations are key for reducing trade deficit. For building foreign exchange reserves, the government should encourage its own people through amnesty schemes to bring capital in circulation. It will also help bring stability in the exchange rate,” concluded Awais.