No more loans

Pakistan has returned the second installment of $1 billion to Saudi Arabia out of the $3 billion deposit it received in 2018 to deal with the balance of payment crisis. The remaining amount of $1 billion is planned to be repaid in January 2021. It has also been confirmed that Pakistan approached the Chinese bank for a commercial loan to offset the repayment to Saudi Arabia. Instead of piling up further debt, the prudent course is to compress the outflow of dollars by axing the import of luxury and unnecessary foreign items that are consuming precious borrowed dollars. For the past few decades, the nation has been living beyond its means. It is time for deep introspection as we are losing our political and economic sovereignty by reaching out to borrowers for more borrowings without thinking about the cost of borrowing and the possible fallout of such deals. To become a self-respecting nation, we should follow a wise saying that goes ‘cut your coat according to your cloth’.

What we need is the implementation of strict austerity measures at all levels with conservation of every dollar earned. Unfortunately, this cannot happen without a complete reversal of the policies that are made by the elite rulers for the affluent class. The prime minister frequently quotes how China was able to pull its vast population out of poverty. It was simply due to its pro-poor policy.

Kulsoom Arif

Karachi