Counting Deficits: A Closer Look at Our Financial Shortfalls


Published on: March 17, 2024.

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Changes in Daily Life and Challenges Faced by Pakistan During Ramazan

This week, as Ramazan begins, our lives in Pakistan have taken on a new rhythm. The month of fasting brings a change in our daily routines, with a slower pace becoming more prevalent. However, it is important to note that despite the religious significance of this month, the cost of various food items has risen.

Aside from the changes brought about by Ramazan, we are also witnessing other significant shifts. New governments have been established at both the federal and provincial levels, amidst challenging circumstances. On Wednesday, an unexpected meeting took place between Prime Minister Shehbaz Sharif and Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, a prominent member of the PTI party.

As March begins, we also experience a shift in weather patterns. The upcoming summer equinox, when night and day are of equal length, marks the beginning of spring. However, in Pakistan, this season also signifies the arrival of the long, hot summer. Unfortunately, we no longer celebrate spring or participate in the once vibrant Basant festival, which used to bring joy to the people of Lahore and other cities in Punjab.

In many Muslim countries, Ramazan is a festive month. It fosters a sense of community and Sehri time, the pre-dawn meal, can be filled with adventure and excitement. As the month progresses, Iftar parties and late-night shopping become more common.

However, there is also a darker side to the month of Ramazan – the rising prices of essential food items highlight the struggles faced by the poor, exacerbating the effects of long-standing inflation. Nonetheless, this month is also marked by acts of charity, as giving zakat (alms) and donations to the needy becomes obligatory for believers. Extensive arrangements are made to provide Iftar meals to the general public.

To address the needs of the poor, significant investments have been allocated for relief packages, which are being administered in a more organized manner this year. However, the excessive publicity surrounding these projects, driven by political motives, undermines the dignity of those receiving aid.

The current situation in society starkly highlights the visible disparities between the rich and the poor. International organizations, such as the World Bank, have consistently called for Pakistan to reduce poverty and achieve fiscal stability. Now, we face the challenges of dealing with the International Monetary Fund (IMF), presenting us with the opportunity for a fresh start. With a new government and a new finance minister, there is hope that the intended macroeconomic reforms will yield positive results.

An IMF staff mission is currently in Pakistan, engaging in discussions with Pakistani authorities regarding the country’s $3 billion short-term bailout package. Though I lack expertise to delve further into the specifics of these economic reform agendas, I believe that the solutions to our shortcomings should be within the capabilities of our experts and planners.

I recall a conversation between IMF Managing Director Kristalina Georgieva and our former caretaker prime minister, during which she requested that Pakistan collect more taxes from the wealthy and protect the poor. The irony of this encounter is evident – a government official being asked to protect the poor people of his own country. However, this task is extremely challenging, if not impossible, for our leaders due to the lack of protection for the poor in Pakistan.

Fortunately, our present prime minister acknowledges that the wealthy have been receiving subsidies at the expense of the poor, and he aspires to rectify this imbalance. Nevertheless, can he accomplish this within the duration of his tenure? Hopefully, he also recognizes that the poverty experienced by our people cannot solely be measured in material terms. The true challenge lies in replacing the reality of elite capture with social justice and empowerment for all marginalized citizens.

The concept of human development has been introduced by the United Nations Development Programme (UNDP), which has formulated an index to rank countries accordingly. Pakistan, the fifth most populous country in the world and a nuclear power, currently ranks 164 out of 193 countries. This represents a drop of three spots from the previous report. When compared to other developing countries, our nation is consistently placed at the bottom of South Asia (excluding Afghanistan).

Unsurprisingly, Pakistan is categorized as having “low” human development according to the HDI. This index aims to quantify a country’s level of prosperity based on various economic and non-economic factors. The latest report emphasizes that while the world has returned to pre-pandemic levels of development, a widening gap persists between rich and poor countries. The report highlights that “rich countries experienced unprecedented development, yet half of the world’s poorest nations continue to languish.”

During this month of Ramazan, we have ample time to reflect on these matters and consider the challenges that lie ahead. It is crucial that we take action to address the disparities within our society and strive for inclusive development that benefits all of our citizens.

Source: The News Pakistan