How Imran Khan can solve Pakistan’s economic mess

How Imran Khan can solve Pakistan’s economic mess.For starters, $ 6 Billion IMF injection will not do much at all.

It’s the 75 % Debt to GDP ratio i.e. $10-12 Billion debt payments required to be made every year that is the problem. Further troublesome is the high nonproductive expenditure on defense ($ 11 Billion), subsidies for PIA & Pak-Steel etc. ($1 Billion), Billion circular Debt ($0.5 Billion) and oil import bill ($18 Billion) nonproductive expenditure on defense ($ 11 Billion), subsidies for PIA & Pak-Steel etc. ($1 Billion), Billion circular Debt ($0.5 Billion) and oil import bill ($18 Billion)

In one year CPEC return payments will top $ 5 Billion.

I haven’t even mentioned the self-serving , incompetent officers in the government institutions that don’t have the capacity to generate revenues and are there just to shine their own shoes.

Now coming to the dismal yearly tax revenues ($ 3.5 Billion), ForEx reserves ($ 17 Billion), low exports ($25 Billion), and low remittances ($19 Billion) are insufficient to handle a country of 210 million people that love free lunches.

The ‘final solution’ is getting rid of the massive loss making industries like PIA, CAA, PSM, Power plants, DISCOs, Highways, Ports, Railways, mines, engineering & weapons factories etc

The privatization will give instant relief to the government exchequer. In a few years, the same privatized industries will start paying back to the government.

The rot in Pakistan’s public sector is too deep to correct with the prevalent culture and quality of human resource available. This rot has set in because of decades of self-serving policies by dictators and incompetent Prime ministers, that there is no other way to make these government owned enterprises profitable.

This culture of corruption in Public sector is the only true system left in Pakistan and the only counter is to get rid of the festering limbs.

People might argue that Privatization would create oligarchs; my counter argument is that we just have to create competition for each privatized entity in the same market. This will neutralize their monopoly.

For example, after Pakistan Steel Mill’s privatization, the government should revive Tuwairiki steel mills to ensure no monopoly takes place and everyone benefits.

Privatized units will draw in massive investments that cannot be brought in by the government itself.

A privately owned company is efficient, more responsive, and innovative. If a healthy competition is made available — through regulators— everyone will be happy.

There is no point holding on to water supply companies in Pakistan when cities are dependent on water tanker mafia.

When a public enterprise makes a market mistake, it asks for a bailout, unlike private firms that anticipate speed bumps.

With so many out of work engineers in Pakistan, what is the point of keeping WAPDA, Aeronautical Complex & HMC with the Government? If at all, privatization will give better products to their prime customers — the government of Pakistan

A recent survey showed that there is not a single engineer in 22-grade, in the government machinery — so much for knowledge is power!

So, slash away Mr Imran Khan, cut loose from this hulking machinery that is grinding the country to halt. Lose the unproductive stewards, which this corrupt system has thrown up.

You owe this to Pakistan.

Quickly follow up privatization program with devolution of power and finances to union council level. This will ensure businesses thrive without government’s intervention.

Privatization is giving power to the people — isn’t that what you believe in Mr Imran Khan?

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Mr Imran Khan where is your courage of conviction,

My lament to my beloved Pakistan,

the real fight is coming.