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Economic situation in Pakistan only to worsen so long as support for radical organizations continues.
Written by Paul Antonopoulos, independent geopolitical analyst
Pakistan’s economic managers are telling the country’s top leaders that they have no option but to remain under the existing International Monetary Fund (IMF) programme worth $6 billion to prevent a full-fledged economic disaster. In fact, it was revealed only days ago that Pakistan’s evasion of structural reforms had compounded its financial problems.
This is the first time in Pakistan’s history that its negotiators had to capitulate to IMF conditions, i.e. the parliamentary approval for the passage of the Tax Laws (Fourth) Amendment Bill and State Bank of Pakistan (SBP) Autonomy Bill.
This is likely to cause political chaos in Pakistan as the opposition in the Senate claimed on Wednesday that the government had signed a “document of financial surrender” with the IMF and warned against making the SBP answerable only to the IMF.
Former Senate chairman and Senator for the opposition Pakistan Peoples Party, Mian Raza Rabbani, highlighted that Article 77 of the Constitution reads: “No tax shall be levied for the purposes of the federation except by or under the authority of Majlis-i-Shoora (parliament).” He also complained that no meaningful discussion took place in parliament regarding the issue.
Leader of the House in the Senate Dr Shahzad Waseem instead blamed the economic situation for the “mismanagement” of previous governments, stressing that the current government had to return debts worth $55 billion. He added that the current government had already returned $29 billion over the past three years and that another $12 billion each would be returned this year and next year respectively.
Successive Pakistani governments have not acknowledged their inability to implement the identified and agreed necessary structural reforms, specifically in the prevailing tax structure and energy sector. The IMF have argued in favor of full cost recovery to raise utility charges.
Although the IMF, as well as other multilateral agencies, have been criticized in Pakistan because of their harsh upfront monetary and fiscal policy conditions that have eroded its growth rate, the country is currently on its 23rd IMF programme. Each programme typically has a three-year duration, meaning that Pakistan has been on an IMF programme for around 69 years of its 74-year history.
Pakistan has always struggled economically since achieving independence from the British in 1947. Along with poor economic planning and management, Pakistan also has a bloated military budget because of its maintenance of nuclear weapons, funding and arming of terrorist organizations, and using the military to try and realize its claims over India’s Jammu and Kashmir.
It was heralded that the China–Pakistan Economic Corridor (CPEC), a collection of infrastructure projects under China’s greater Belt and Road Initiative, would bring desperately needed jobs, infrastructure and investment to Pakistan. However, the International Forum for Rights and Security believes that the ongoing protests and attacks against CPEC will prove to be detrimental for infrastructure projects and investments in Pakistan.
“There has already been a decline in Chinese investment in Pakistan. This can be detrimental for future foreign investment in Pakistan, inflicting further damages to the ailing economy,” said the think tank.
The think tank’s comments were made in the context of protests in Gwadar, the port city that is considered China’s crown jewel of CPEC. Dangerously, the Jamaat-e-Islami pro-Shariah organization, one of the largest politico-religious groups in Pakistan that wields huge societal influence on the majority of Pakistanis, declared their support for the protests. Effectively, some of the most extremist elements in Pakistan are now openly against Chinese investment and are increasing their anti-China campaign, especially in the context of Beijing’s alleged treatment of Muslim Uighurs in Xinjiang province.
Last month, thousands of Pakistanis protested in Gwadar against Chinese activities in the region, claiming that China negatively affects local livelihoods. Jamaat-e-Islami leader Maulana Hidayatur Rehman made over 19 demands, one of them being a call for action against the “trawler mafia” — Chinese fishermen fishing and docking on traditional grounds.
With frustrations that Chinese workers are perceived to be taking Pakistani livelihoods, Chinese workers and nationals are continually targeted in terrorist attacks. Nine Chinese workers were killed in a bus blast on July 14, another was shot and wounded on July 28, and one was wounded in a suicide bombing on August 20. This is just a few examples of a plethora of attacks targeting Chinese workers and nationals in Pakistan since CPEC was launched in 2013.
With the IMF losing patience and set to impose harsh measures, a decline of Chinese investments in the country, being listed on the Financial Action Task Force’s monitoring ‘grey list’ for funding terrorism, and with the European Union threatening sanctions, Pakistan is in an extremely difficult economic situation and is struggling to rectify it.
However, Pakistan’s economic woes stems from its uncompromising position on supporting terrorism. Pakistan weaponizes terrorism to spread its influence in Afghanistan and maintain constant pressure on India. But Pakistan’s fostering of radical Islamism is now driving away desperately needed Chinese investment and gives reason for the IMF to take greater control of the country’s finances. In this way, Pakistan cannot enjoy any respite or true progress for its citizens until it debloats its military budget and ends its support for terrorist and radical Islamist organizations.
Spot on!
A fellow It seems you have used toilet paper and not water to clean your backside as the author has not produced any evidence but plucking issues out of thin air Basically paid poster boy of zionist and India
Prophet Muhammad died due to poisoning
Ppuu Absolutely but you will die of not washing your backside
Paul Antonopoulos, IS A GREEK zionist writer with highly biased view cherrypicking Finer points BY ACCUSING PAKISTAN OF TERRORISM IN REALITY PAKISTAN HAS BEEN VICTIM OF TERRORISM IN BALUCHISTAN BY INDIAN RAW BACKED TERRORIST AND US DRONES IN NORTH WITH CIA / INDIAN RAW BACKED TERRORIST NEAR AFGHANISTAN BORDER BASICALLY ANTONOPOULOS IS A LIAR Protest by women in Gwadar was basically very poor women in Baluchistan were USED AS RENT A MOB
Putinisagaywhore Absolutely please do not downgrade me to be stupid SAY I AM THE MOST STUPID GOAT FUCKER IN THE UNIVERSE IT IS GREAT HONOUR THANK YOU VERY MUCH NOW ARE YOU HAPPY?PLEASE DO NOT USE TOILET PAPER NEXT TIME PLEASE USE WATER MORE CLEANER AND NOT SMELLY YOU SAY THIS AS YOU CAN NOT DENY WHAT I AM STATING
Putinisagaywhore Please note DO NOT be JEALOUS OF ME BEING A GOAT FUCKER AND YOU BEING RENT A BOY IN AMSTERDAM IN YOUR BROWN STAINED SMELLY DHOTI YOU HAD A CHANCE BUT BLEW IT TO BECOME RENT A BOY NOW DO NOT BLAME
Pakistan is working with China, 2 disgusting countries that I persoanlly hate.
Israel should arm India with more high tech weapons to counter them both, and the U.S needs to step up their actions in the Indian ocean.
Iron_zion Absolutely your wish will be GRANTED IF YOU WERE TRUE FRIEND OF INDIA BY BUILDING 400 MILLION TOILETS AND SEWAGE TREATMENT PLANTS IN INDIA INSTEAD OF PROVIDING JUNK ARMS TO POOR DHOTIWALLAS WHO DEFECATE IN STREET AND YOU STEPPING ON IT NOW CAN I BE MORE FAIRER TO YOU
I take it that you’re not an Indian, so what is your nationality?
If you are from Pakistan or China, that explains why you hate Indians. They are a true democracy not a fake Islamic shithole and a dictatorship of one man.
India is doing fine even without Israel’s help, but they can always do better with more support.
Iron _zion Firstly you have not answered my question ie if you were true friend of India you would build toilets and sewage treatment plants in India first If they were true democracy then why are nearly 35 liberation movement in India why do not India hold Plebiscite in Kashmir as per UN resolution You are talking from your backside which has been wiped with Toilet Paper not water hence smelly I am NEITHER PAKISTANI NOR CHINESE NOR ANYWHERE NEAR THERE I AM MAKING A COMMENT BASED ON MY OBSERVATIONS AND VISITS TO INDIA
You are right in one thing. They mainly are majority rule by the extreme Hindus.
Jens Holm Sad part about IndiaN HISTORY is that it has ALWAYS BEEN RULED BY OUTSIDERS FOR LAST 5000 years and suddenly For 70 years Indians got to rule by themselves It is like putting A BEGGAR IN A PALACE IE THEY ARE UNABLE TO DISPENSE THE POWER THEY HAVE WITH JUSTICES TO ALL ALSO DEEP SEATED CASTE SYSTEM WITH EXTREME INFERIORITY COMPLEX HAS CREATED THE PRESENT SITUATION ie western world are NOT TRUE FRIENDS OF INDIA THEY NEED INDIA FOR THEIR DONKEY WORK WHICH YOU CAN SEE ALL OVER
If Yousay so. I agree in abot half of it.
Jens Holm What don’t you agree? Point it out Why be cou