Darnomics or Illusion

Without mincing words, allow me to say that Pakistan’s Finance Minister, Ishaq Dar, is busy in creating illusion that with his taking rein of finance an era of prosperity has begun. His premise that Rupee has got stronger against US dollar is nothing but gimmickry.

Let me remind my readers around the world that lately US dollar was made stronger artificially by the US administration. The US also wanted to create illusion that hike in energy prices around the world has failed in denting economy of the country.

One may recall that lately when OPEC Plus decided to curtail output, Joe Biden, President, United States was most furious. He knows that hike in motor gasoline is bringing down his popularity graph, which may led to defeat of his party in the mid-term elections.

Therefore, the attempts by Dar to show that Rupee is getting stronger are ‘misplaced’. In this endeavor, Pakistan is bound to lose more of its limited foreign exchange reserves.

This is also to remind him that in Pakistan there is a huge mismatch between the inflow and outflow of dollars. IMF tranche may have provided a breather, but the quantum of debt servicing is grossly unmanageable.

The brutal fact is that the recent floods have devastated country’s agriculture, displaced millions of people and their rehabilitation requires millions of dollars. If I am right bulk of the aid has come in kind and whatever paltry amounts have come is ’peanuts’ only.

This is to also remind the Minister that higher interest rate and persistent hike in electricity and gas tariffs are rendering Pakistani manufacturers, particularly exporters of textiles and clothing, uncompetitive in the global markets.

It is writing on the wall that imports will go up and exports will come down, widening the current account deficit. Since Dar has no control over imports, Pakistan’s only savior could be exporters. However, the lust to collect more PDL to bridge budget deficit is killing golden-egg layer, textiles and clothing industry.

Although, I am not an admirer of Miftah Ismail, any attempt to portray Dar as savior is like building an empire on the dead body of another person. If the readers are unable to understand this narrative let me say, “Miftah was used to announce all the bad decisions and Dar is being projected as a Savior”.

To conclude allow me to say, “The incumbent government has no clue whatsoever regarding pulling the country out of current economic crisis, all its policies can be termed ‘firefighting’ but the fire is too big and water is too little.”