The potential mismatch between the two countries’ proposed economic and domestic situation is alarming
News Time
On the death of former Egyptian president Mohamed Morsi, an analyst wrote: What is the similarity between Egypt and Pakistan? Why are we the same? Hassan al-Banna, Quaid e Azam, Abul A’la Maududi and Sayyid Qutb, Gamal Abdel Nasser and Zulfiqar Ali Bhutto. Hosni Mubarak and Zia-ul-Haq, Abdel Fattah el-Sisi and … where to compare everything is written in the history books. The question is, what is this similarity and why? The history of Egypt is the history of kings and so is ours. Whatever the name of the king, it is Pharaoh. In one word, the concept of kingdom has come to an end.
Historically, the comparison between Egypt and Pakistan may be debatable, but the potential similarity between the two countries’ proposed economic and internal situation is alarming. Egypt launched a $ 12 billion IMF program, which ended in July, three years ago, due to worsening economic conditions and a trade deficit. Leading economic affairs journal The Financial Times in its recent report praised the economic situation in Egypt; Egypt is seen as the region’s fastest growing economic power, according to the journal. When Egyptian President Abdel Fattah el-Sisi took power in 2013, the poverty rate was high and foreign investment was extremely low. The journal quoted an economist as writing that Egypt is an example of successful economic reforms and an emerging economy. Egypt reduces local currency prices after launching IMF program, eliminate subsidies and increase taxes on basic necessities. According to the journal, Egypt’s growth rate today stands at 5.6 percent after 2010, following the end of the three-year program, debt and budget deficit have decreased, growth rate has been reduced from 12% to 8% in three years, the private sector, however, is still hesitant about government policy.
On the one hand, this is a report on Egypt’s economic situation in which investors have expressed satisfaction over Egypt’s economic situation, on the other hand, another well-known journal, The Economist, presented a somewhat different picture. The Economist depicts the disappointing image of Egypt’s deserted bazaars, where shopkeepers sit hand in hand, due to the rising cost of electricity; all the lights in the shop are illuminated except for mobile lighting. Egypt according to the journal plans to reduce the poverty rate to half in 2020 and complete elimination of poverty by 2030, but Egypt is on the wrong track, because according to official statistics, in 2018, 33 percent of Egypt’s population lives below poverty, while the rate was around 28 percent in 2015, contrary to official claims, according to the World Bank, 60 percent of Egypt’s population is on the brink of poverty or poverty.
The Economist writes that the reduction in currency prices and the imposition of taxes reduced Egypt’s deficit, but the lives of ordinary Egyptians got worse, reducing daily subsidies on gasoline and gas made daily commutes expensive, domestic spending has increased 43%, with Egyptian citizens earning less than three years ago. The poorest segment is being affected by the economic situation, meat has become a luxury item, and ordinary food items have become expensive. According to the journal, the government is withdrawing money from citizens’ throats, driving licenses, gun permits, school fees, etc. All prices and taxes have increased. The Egyptian government has launched welfare schemes for the poor in view of the economic situation, but the rate of those using them is only 10%. An interesting and important point in the global media reports on Egypt’s economic situation is that Egypt is controlled by the military, there are several companies owned by the Egyptian forces, each occupying an area dominated by the military which has a negative impact on the overall economic situation. This point has nothing to do with the economic situation of our country, just this is the point mentioned.
The current economic situation in Pakistan is not much different from the situation in Egypt three years ago. We also face problems like trade deficit, poverty and reduction of foreign investment, the worrying thing is that we are also adopting the same approach that Egypt adopted to solve those problems, it is clear from the above reports that the end of the trend is that the economic indicators will improve, the claims of the governments will reach the heavens, investors will be happy, but the lives of poor people will be more difficult and the impact of such welfare schemes will be limited. A significant addition to the change in the government’s economic team prior to the launch of the recent IMF program was the deployment of Governor State Bank Dr. Baqir Raza, prior to his deployment to Pakistan; Dr. Sahib was the caretaker of the IMF in Egypt. It seems that the work of the author is the same in Pakistan as it was in Egypt.
The Egyptian economic model is by no means the norm; the problem is that our arbitrary powers, especially the current economic team, do not understand the conditions of the common man. Egypt will probably launch another IMF program; we were told that this is the last IMF program in Pakistan, but the economic policy being adopted will further plunge us into the swamp of debt. The way to get rid of debt is to promote the local industry, encourage small businesses and increase exports, but the irony is that despite the passage of a year, the government has not yet formulated an export policy.
