Restarting the economy

The state of a nation’s economy can be gauged from robust trading activities. This helps bring long-lasting security and stability to the country. Pakistan remains largely an agricultural country and the economy is strongly dependent on agricultural products. Our cotton, wheat, rice, and even fruits and vegetables are exported around the world and bring precious foreign exchange.

Pakistan earns millions of foreign exchange through the import of fruits. Just during the mango season, more than one trillion rupees worth of business activities takes place. This year, however, farmers are expected to face severe losses due to ongoing coronavirus pandemic and the usual lack of attention. Traders are likely to face losses worth billions resulting in loss of revenue for themselves and the nation.

There is no doubt that China is so far the only country in the world that has overcome the adverse effects of the coronavirus pandemic but the situation in Pakistan remains fragile. Around the world, efforts have been made to end lockdown restriction to restore normalcy in life and restart business activities while maintaining safety precautions.

The situation in Pakistan, however, remains a lot different than other countries. The economy has come to its knees and could collapse if the situation continues any further. The country already faces countless challenges on multiple fronts, both internal and external, and now the pandemic has emerged as the most serious issue which the government has to deal with.

There was a flawed and incoherent strategy to deal with the pandemic right from the outset. No efforts were made to prevent the emergence of the outbreak and pilgrims from hard-hit Iran were brought it with any checks. The government did not take the matter and now the number of infections have crossed over 60,000 cases.

Healthcare remains the most neglected sector and a paltry amount is allotted in state budgets, most of it ends up in salaries. The state of public hospitals is such that no politician is willing to get himself treated from there. An economy that is reliant on debts and loans can be run but not effectively managed. The wheel of the economy needs to turn swiftly to move the nation forward and Pakistan can only achieve this by the competitive advantage in agricultural products.

The government is under the impression that it has fulfilled its responsibility by imposing a lockdown but this was the death knell for the economy. Thousands were rendered unemployed as industries were shuttered while there is no policy to restore them. The people were unable to stay in a prolonged lockdown as they risked starvation and farmers feared standing crops might be destroyed by locust swarms. There has no respite to the pleas of farmers and growers as higher officials seem disinterested.

If the government intends to reopen the economy, it should give incentives to small traders and industrialists such as GST waivers and tax breaks. Japan is offering interest-free loans for three years to all citizens with the option to repay on easy installments. Pakistan can ease its economic hardships by offering soft, interest-free loans.

The government should announce a massive financial stimulus package for the business community, pass over the benefit of reduction in petroleum prices to lower sections and announce the provision of interest-free loans. This will provide solace to traders and industrialists and help them emerge from economic hardships.