Impact of the OBL episode on Pakistan’s economy

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MA-PP-20110505-WB-SMALLA Guest Post by Majyd Aziz

 

The Doomsday theorists and the ignorant anti-American elements in Pakistan have become over-active after the showdown in Abbottabad. Suddenly, they are back into action with their I-told-you-so rabble rousing posture and are trying to galvanize the citizens into a universal condemnation of not only Washington but also the civilian leadership and the military hierarchy of the country. President Obama is being considered as a re-incarnate of the younger Bush while all hell is being let loose on the two well-protected high rollers safely ensconced in Islamabad. The brave among this inciting crowd, all the more fortified by the drawing room analysts and pseudo-democrats, are out to get the scalps of the two Generals who had their tenures extended.

The Formation Commanders made the right noises by warning the White House, in fact, warning the world not to attempt such an adventure again inside Pakistan’s territory. There was the usual talk about ending the drone "culture", reduction in the number of Americans moving all over this nation, and threatening to "review" cooperation between Pentagon and Rawalpindi. Hallelujah. It reminds one of the classic Peter Sellers’ movie The Mouse That Roared. It may play well in maybe Gujranwala.

However, what is missing in all this wailing and blaming is that no one has seriously considered the impact this draconian adventure would have on Pakistan’s tottering economy. Come next fiscal year, there is going to be a fundamental shift in the nation’s budget planning and revenue expectations. The Finance Minister and his jolly band went to IMF with a structured begging bowl but the high priests sitting in the citadel of this institution showed them unusual courtesy by escorting them out the exit door sans any largesse. State Bank of Pakistan big boys have put their hands up in desperation that inflation is still an uncontrolled albatross around the economy. The euphoria in Trade Development Authority of Pakistan and in the minds of less knowledgeable spin-doctors of the ruling party that the export figures would be at all-time high, based on the extraordinary performance of the raw cotton and spinning sector is fizzling out sooner than expected. Half of the spinning mills are switching off their machines because all of a sudden the global demand went poof.

Copyright: Sajjad Hussain | Getty Images

The Finance Ministry officials transformed the Ministry from a being a facilitator to trade and industry by playing their own version of contract bridge by considering themselves as "us" and the businessmen as "they". When there was genuine opposition to the introduction of the macabre Reformed General Sales Tax, some hare-brained official came out with the asinine proposal to get the country’s President to issue three Ordinances as part of the Plan ‘B’ conjured up by minions in Federal Board of Revenue. Lo and behold. The trade and industry representatives got these officials on the carpet and within no time, the Ordinances became stale jokes.

The Federal Budget is due on May 28 and the energetic but elusive Finance Minister will again attempt to teach the Parliamentarians a lesson or two in Economics 101. He has already received a bagful of help from the Presidency who outmaneuvered seasoned politicians and got them to do the tango with him. The budget would be approved but at what cost? Is the country ready to bear the ramifications of what the good Senator Doctor Sheikh has in store for the 175 million denizens? Would it be an ingenious financial vision or would it be dictated orders from IMF and other International Finance Institutions? The answer would be certain when the dust clears on the last Saturday of this month.

Should one recount what is happening on the physical infrastructure scene? Very casually and without fanfare, the nation is now short of 7000 mw of power. Very brazenly, the natural gas people unilaterally decree that gas would not be available for industries and CNG Stations. Those who decide at what cost Pakistanis would get petrol ritualistically but forcefully announce that petrol, diesel, and other petroleum products would now cost an arm and a leg.

The reason why this economic picture is being presented is to bring to the fore the very fact that the OBL episode has come at a very delicate time for Pakistan. The billions spent on the Global War on Terror by this cash-starved nation, the fabulous military victories in eliminating terrorists and extremists from the wild, wild north of the country, and the confidence reposed in the valiant forces by Pakistanis have suddenly burst like a pin pricked balloon. The general feeling was that in spite of the difficulties people faced on the economic front, it was essential and crucial that the Armed Forces were provided with everything to protect and secure the borders and the strategic assets.

This confidence in the Armed Forces must not be allowed to wane. Pakistanis must continue to support and encourage the brave forces. The entire Defense establishment must learn whatever lessons it has to learn and must carry forward. Demagogues and Fifth Columnists must be ignored and should not be given prominence by the electronic and print media.

There should not be despondency and blame-game either within the forces or among the politicians. Dejection at this stage will ruin the country by hampering its economic progress. This is the time for all decision makers to sit with the mainstream businessmen and industrialists to get the country out of this economic quagmire. The Pakistan Business Council attempted to get the politicians to sit with them at the same table and discuss the economic agenda. A noble step, but it did not create any waves because mainstream trade and industry representatives were excluded while third or fourth tier nominees from the political parties came to Serena in Islamabad to make the usual pompous statements. (Incidentally, this writer had proposed such an All-Parties Conference while taking part in a PTV program hosted by Dr Huma Baqai a couple of months back. So, credit to PBC for following it up and spending money to get politicians together).

The impact of the OBL drama would not be as damaging to the country as propagated by many analysts. This is not the time to strain relations with USA and other Western countries. Secretary of State Hillary Clinton has offered a comfort zone to Pakistan. Assurances are coming from Foggy Bottom as well as from Capitol Hill that Pakistan would be supported and that Pakistan needs maximum cooperation from Washington. This is the time for the government and even the Armed Forces to ensure that American financial assistance is not squandered away and also that Pakistan should be provided all facilities to procure smart defense technology to continue its frontline role in exterminating terrorists and extremists from this country. Emphasis should be on foreigners who have created havoc by assuming the role of so-called Jihadis. The Saudi Arabian, Sudanese, Egyptian, and the Chechen Jihadi elements must be declared persona non grata and their native countries be forced to take them back.

The recent positive outcome of the talks between the Interior Secretaries of India and Pakistan in New Delhi and the Commerce Secretaries in Islamabad and Bhurban will open new vistas of economic cooperation not only between the two countries but among all SAARC nations. This is a breath of fresh air and the expectations are positive and beneficial for Pakistan. Furthermore, there is expectation of foreign investment not only from India but also from other countries. This is the time to invite massive investment in minerals exploration, in information technology, and in livestock. These would create jobs and pump up the economy.

Pakistan cannot afford to be strangled by the OBL opera. Once lessons are learnt, once accountability has ended, and once the nation’s skies are really made impregnable, the concentration should be on the economy. The most unpatriotic thing a citizen can do at this juncture is to be persistent in carping about the capability and competency of the Armed Forces while at the same time, all those who are neglecting efforts to rejuvenate the economy are guilty of the same crime too. This is the ideal time to say "YES" to the Founder’s motto: Unity, Faith, and Discipline. By the way, what happened to Pakistan First?

 

Majyd Aziz is a Karachi based Entrepreneur and a senior leader of the business community. He is a former Chairman of SITE Association of Industry, former President of Karachi Chamber of Commerce & Industry, and has held posts on the board various public organizations and companies.


This article is taken from another source. Views expressed in this article are those of the author and may or may not be the views of From The Pulpit and DiscoMaulvi. To submit content for From The Pulpit, please email FromThePulpit [at] MuhammadAly [dot] Com.

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5 thoughts on “Impact of the OBL episode on Pakistan’s economy”

  1. Plainly speaking, we have no choice due to aur problems of roti, kapra, makan and berkin bags that we should become like Red Indians (wasn’t the recent mission name was Geno…something after an red indian)

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  2. RIGHT NOW EVERY POLITICIAN WORTH HIS SALT IS CLAMORING FOR HIGH PROFILE RESIGNATIONS. WILL THIS SOLVE OUR WORRIES? WILL THIS RESTORE OUR “HONOR”? WILL THIS BRING A BETTER CROP TO RULE OVER US AND (OK I AM A CYNIC) BECOME OUR SAVIORS? WHAT IS REQUIRED IS TO COMPREHEND THE DYNAMICS OF THIS EPISODE AND INSTEAD OF GETTING THE COUNTRY OUT OF ITS ECONOMIC MORASS, THOSE WHO “SPEAK FOR THE PEOPLE” MUST NOW CHANNELIZE THEIR ENERGIES, THEIR RESPECT, AND THEIR MARKET VALUE TOWARDS BUILDING UP THIS GREAT MOTHERLAND OF OURS. MY FINAL TAG LINE IN THE ARTICLE IS: By the way, what happened to Pakistan First?

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  3. Experts note that poor economic conditions are conducive to terrorist recruitment strategies, but terrorism constrains economic growth. Pakistan (with help from allies) will have to find a way to break this cycle of violence and poverty. Recent U.S. proposals, such as the Reconstruction Opportunity Zone legislation, do not address fundamental incompatibilities with domestic needs and are seen locally as more beneficial to the United States than the Pakistani people.
    We consider economics a major driver of change as we imagine possible scenarios for Pakistan in 2020. Without economic growth, many goals for Pakistan and the region cannot be realized. Where do you think Pakistan should focus its resources? Are there any solutions for Pakistan’s economic constraints? What can the world community do to help? Leave a comment below and tell us what you consider to be Pakistan’s economic obstacles and opportunities.

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  4. Maybe these developments are not altogether bad, for amid this turmoil the leaders of both countries, if not their vocal populations, are beginning to understand that a new, interests-based regional partnership must be forged before some political point of no return is crossed. Pakistan and the United States need a new paradigm for cooperation, one that will not only guide the bilateral relationship through the endgame in Afghanistan , but also influence Pakistani and U.S. policies in an Indian Ocean region on the verge of a new Great Game for mineral resources and economic domination.

    The main players in that game are India and China ; the prizes are Afghan and Pakistani resources and overland trade routes to the Arabian Sea . The United States ‘ role is important, even critical, but it is as yet undefined by American political leaders.

    Ultimately, the United States may have to shift part of its security and political focus from its Atlantic relationships to the Indian Ocean region.

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