Finance: Economic issues far from over

The current fiscal year that began on July 1 may turn out to be another year of low growth and high inflation due to political instability, uncertainty about elections and the growth-choking nature of the International Monetary Fund’s (IMF) short-term financial support. This means people who don’t have jobs — and there are eight million permanently jobless people — may not get jobs during this fiscal year. Typically, an average employed Pakistani supports a family of five. So, at least 40m Pakistanis will be struggling hard to survive, and many of them will have to depend on state welfare programmes and non-governmental organisations just to eat two square meals. But Pakistan’s revenue resources are being consumed mostly in external and internal debt servicing, defence and spending on pay and pensions of the government employees. So, feeding at least 40m people through the state welfare programmes is just not possible. Large charities, including Edhi Foundation, JDC Foundation and Saylani Welfare Trust, have already raised alarm bells over dwindling financial donations after last year’s meagre 0.3 per cent growth of the economy.