Government and bureaucratic apathy leave loans unutilisedWith the country’s macroeconomic situation deteriorating sharply due to decades of neglect, a near-default situation was recently narrowly averted only by some friendly countries chipping in with generous assistance. The precarious foreign exchange reserves were temporarily ‘stabilised’, but the underlying flaws plaguing the economy are so many and so grave that they demand stringent regulatory, institutional and policy reforms. A strong political will or drive towards this end has always been lacking, as political leaders are loath to introduce reformist agendas which could end in popular backlash. As early as December 2018, the WB cancelled a $250 million soft loan under the concessionary International Aid Association for emergency relief and disaster management over macroeconomic guidelines divergence. But now there is no more room for complacency and wiles.

Source: Pakistan Today March 12, 2019 08:03 UTC