The debt trap

This refers to the news report ‘Trade deficit falls to $2.807 billion in Feb’ (Mar 12). The adverse trend in external trade continues while the government has not come up with a rescue plan. The imports are expected to touch $50 billion by June this year while the exports will fall to around $20 billion. The exports are covering just 40 percent of the import bill, a record in Pakistan’s 70 years of existence – and a woefully poor show when compared with the countries in the region, whose economies are shining. The raise in cash margin to 100 percent recently on some import items is not going to help.

Likewise, the Rs180 billion export package announced by the government will not deliver results. The country is caught in a serious debt trap while the worst is yet to come when the loans mature in the not too distant future. It is time that all saner elements, including media, raised their voice against the gradual deterioration of the national economy because of the government’s mismanagement and pro-rich policies.

Majeed

Karachi