The Country Director of World Bank has declared that the financial system of Pakistan has collapsed completely in which the fruits of development is limited to only a particular higher class due to which the poverty is increasing so the country needs overhauling of its economy.
It is not true that the rulers do not know about the bottlenecks in the financial system of the country that are indicated by the world bank official, but they only close their eyes towards these problems.
The government, which completed its tenure in last August are making tall claims that they avoided the bankruptcy of the country but as a matter of fact the it had totally failed to give any solid fiscal policy to drag the country out of the crises and take it to the economic stability.
The disaster tale does not restrict to only one government; rather every government that came into power in the past, could not pay attention towards giving solid economic policy that resulted in Pakistan’s economy having become dependent on the foreign debts.
Due to the flaws in the economic system of the country, the economic activity is limited due to which the buying power of the people has been minimized to almost zero level. Now it is impossible to put the economy right on track without a well-structured economic policy.
All the stakeholders now should be combined on such a charter of economy on which the change of regime would not have any kind of effect and the foldaway of economic development should be continued without any break.
Now it is the high time to revise the economic policy of the country on a permanent basis. It has become a routine from the last many decades that each and every government takes hefty loans from international donor agencies in extremely tough conditions but in return it starts very few mega development projects in two or three big cities which cost a small amount of money as compared to the volume of the loan. The main question is that people did not know where the remaining money had gone, rather there are some speculations that the lion’s share of the loan amount was transferred to the Swiss bank accounts owned by the corrupt rulers.
The ruler put the entire burden of extra taxes and additional duties on the people to repay these loans even though the common man does not get any major benefit from these loans. This poor policy of every government in the past enhanced poverty in the country and due to the conditions of the donors, the price-hike of different commodities, especially petroleum, electricity and gas, increased so much that it became very hard for the common man to meet both ends.
The ill economic policies of the government resulted in the clear cut division in the society into two classes including ‘haves’ and ‘have nots’. The rich segment is becoming richer while the poor are going down from the poverty line. The middle class is being eliminated from society as those belonging to that class have either jumped into the high class by minting money from unauthorized means or those who stuck to their moral integrity are going down to join the lower class as their financial plight has been weakening day by day. It is an old saying that the middle class plays the role of a wall to prevent revolution in society and if it is abolished, then it means that revolution is knocking the door.