Import nation

This refers to ‘Real data or just economics of wishful thinking’ (Feb 25). Pakistan is an agrarian country and 70 percent of its population is employed in agriculture. But it faces shortage of wheat and sugar which are being imported. Earlier, tomatoes were imported to tide over the skyrocketing prices. The principal cash crop, cotton, once a foreign exchange earner, is now imported to meet the requirement of the textile industry. Edible oil and tea is imported in large quantities as we do not produce these. In essence, Pakistan is a food deficit country and spending billions of dollars on imports to meet its requirements.

With a nascent manufacturing base, Pakistan is an import dependent nation. Many of the industrial units are mere assembling or packaging facilities. Even the dilapidated manufacturing sector has contracted during the last 18 months. The exports remain flat, despite incentives and concessions offered as a stimulus. Domestic investment is at an all-time low and new capacity is not being added. The FBR’s revenue target is registering a record shortfall owing to contraction. With declining productivity, economic and financial stability is being managed by the government through borrowed money. This is a flawed strategy to artificially prop up the economy as the country suffers more debts. But the government is harping on elusive economic success, one which is invisible to the public at large. The key statistics speak otherwise and give a message that the economy is sinking.

Arif Majeed

Karachi