Pakistan Economy: Sinking Like A Rock, says Asian Development Bank.

Sinking like a rock: Slim chances of recovery for Pakistan’s directionless economy, says ADB

By Shahbaz Rana / Creative: Anam Haleem

ISLAMABAD: Amid deep-rooted concerns over a “directionless” economy due to failure of the previous government and inability of the caretaker setup to take immediate meaningful steps, the Asian Development Bank has warned that Pakistan’s current growth model is unsustainable that also undermines future prospects.

In its Asian Development Outlook, the Manila-based lending agency has painted an extremely bleak picture of Pakistan’s economy that is “directionless” and immediate recovery chances are almost nil amid a worsening balance of payments position.

“A difficult political situation stalled effective policy response to macroeconomic and structural problems, especially regarding energy, and the end of the government’s 5-year term in mid-March limited political scope for major policy or structural reforms,” it said.

The economic developments in this fiscal year are unfolding along broadly similar lines as previous year, but with “deepening concerns about sustainability and the adequacy of forex reserves”.

A missing link in the ADB’s analysis of political failures is the role of bureaucrats in running the affairs of the government who often do not disclose actual extent of problems to the leadership.

‘Stable Afghanistan not worth abandoning strategic interests’

By Shahbaz Rana

Excerp:

…. The German cabinet member appeared reluctant to commit to additional assistance for security. “We know that for our work we need a secure environment but we cannot make payments as much as you require,” he said. …

…. The German minister urged Pakistan to implement tax reforms. “For us as donors, a strong, big and proud country must do more than have revenues from only 1.5 million people out of a 180 million population as it is important for us to explain our taxpayers,” he added.

To read complete article: The Express Tribune