Lol..bankruptcy is your eventual fate dude for tolerating these courts and voting sharifs/bhuttos..not coming out on roads when it was needed the most.... bankruptcy was always a hanging sword since lost 90s... it didnt suddenly come out from nowhere.
True to an extent. But IK was doing something against it, initially he realised when took over that the situation is dire, he ran around and got enough dollars to avoid it, ever since, he was gradually building on it, increasing tax collection and exports.
Only problem I have for his last 3+ years is that he should have curbed imports more actively. But in that regard he was doing something by increasing large industry output. Manufacturing of mobile is one such step. Which could save billions in imports. More such industries needed to be build.
Pakistan simply cannot sustain, an import driven economy. And have to build an industrial base. Otherwise Balancce of Payment and begging for the dollars would be Pakistan's fate.
What makes me laugh is that running a country is not difficult at all, if you are educated enough and understand that running a country is basically running your household on a much larger scale.
The only difference is , running a country is multifascade, there is an internal and external aspect to it.
Internally Imran Khan has raised collection of taxes significantly in last 3 years to help reduce budget deficit financing.
In simple language, if you have more domestic expenditure, running of the current government expenditure (including provinces share) + Debt financing+ development fund. These three are financed through tax collection and any deficit is filled by further borrowing.
This cycle had to be broken by Pakistan for its suvival, this is easier to deal with , because it is all domestic and much more in the control of the government. It can try to control the deficit by three means.
1- Increase in collection of taxes.
2- Decreased in non-essential expenditure.
3- Reducing debt financing. To do this following steps are needed.
A- Reduce the monster of "Capacity Payments" which is purely creation of both PPP and PMLN by awarding ridiculous contracts to PPP , mostly to their chums and supporters, and in the last government of PMLN to some Chinese Companies. IK worked on this, by renegotiation with these companies to reduce the burden. These contracts are so damaging for Pakistan that it cannot be in breach , unless it wants; to face the conseuqences in international courts.
B- Try to either manage or get rid off, loss making government enterprises.
C- Reducing the expenditure.
Not dealing of either of them, pushes the government to do 3 things in general.
i- Print more money, causing inflation.
ii- Borrow more money from local banks, increasing debt and debt payments. It starts a new cycle of debt, this also could be inflationary.
iii- Levy more taxes, or get rid of the subsidiaries, not popular because it means more burden on the populace , increase prices and regressive taxation.
So this is domestic side of the Economy taken care off.
External factors are something more difficult to deal with, the mosnter faced by Pakistan is due to this segement of the economy.
the eqaution is simple, Exports- Imports = Current Account Deficit
This at the moment is financed by two means by Pakisitan,
Remittances+ foreign borrowing.
Bigger the gap, more problems faced by Pakistan.
Remittances have increased recently, which have lessen the burden somehow. But blind increase in imports have nullified increase in remittances and increased the pressure on rupees, no wonder it is in step decline at the moment agaisnt US Dollar.
Two pronge approach is needed to deal with it, no rocket science, increase your exports and reduce your imports. narrow or eliminate the deficit and you are laughing all the way to the elections.
This is a complete simplistic guide for everyone to understand the vows of Pakistan.
By the way, I hold Masters Degree in the discipline. This was jargon free version of simple steps needs to be taken, or Pakistan face very serious threats on its independence and survival. Remember vultures are all around you, ready to break Pakistan. Don't say they can't, because they have already done it once.
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