Currently, there is a peculiar debate regarding the country’s economic situation. There was a time when the narrative was that the country was on the verge of default. We were repeatedly told that the country would default soon and that Pakistan would be made another Sri Lanka. An environment of default was created.
I am not saying that there wasn’t an economic crisis, but some political forces, instead of helping to resolve it, worked to exacerbate the crisis and spread despair in the country. Nonetheless, Shehbaz Sharif succeeded on both fronts: he prevented the country from defaulting and defeated those spreading despair. Perhaps this is why he is the Prime Minister again, as there is no tradition of becoming Prime Minister consecutively in Pakistan; typically, there is a tradition of leaving office or going to jail. Shehbaz Sharif has achieved the rare feat of becoming Prime Minister twice.
Even today, while efforts are being made to provide economic stability, the same elements that once propagated the default narrative are now spreading a narrative of economic destruction. Shehbaz Sharif faces challenges on two fronts: working to stabilize the economy, which is a significant challenge, and combating those trying to create an environment of economic ruin. Instead of encouraging the nation to fight for economic stability, these elements are spreading despair again. False news is circulated daily, trying to convince ordinary Pakistanis that the economic crisis has become severe and that Pakistan is economically doomed. Instead of a default narrative, there is now a narrative of economic devastation.
An environment is being created that major business companies are leaving Pakistan and that international confidence in the country is waning. Here are some facts to clarify the difference between fake news and reality. A widely circulated news item on social media is that the international French company Total, with over 800 petrol pumps in Pakistan, has decided to leave the country due to its economic situation. The truth is that Total has sold 50% of its business shares in Pakistan to the Swiss company Gunvor for $26.5 million. Instead of Total alone, now the Swiss company is also involved. This international collaboration indicates that international companies are interested in business and operations in Pakistan. However, this news is being portrayed negatively, while economic experts see it as a positive development.
Another news item circulating is that Shell has decided to leave Pakistan. The reality is that Shell has sold 77.42% of its shares to the Saudi company Wafra Energy. Shell and the Saudi company will now work together. This is also a collaboration between two major companies.
Recently, Moody’s upgraded Pakistan’s credit rating. Previously, there were reports of rating downgrades. Moody’s improved the credit rating due to increased foreign exchange reserves, reduced default risk, and improved liquidity.
Has this happened in Pakistan before? Isn’t this an international recognition of economic stability? The IMF package has not yet arrived, but economic stability is visible. Although global investment has not yet reached Pakistan, the economic stability is apparent. The value of the rupee has remained stable for over a year, a stark contrast to the past when the rupee’s value constantly fell and the dollar soared. The government has addressed these issues, and the rupee’s value has stabilized.
Inflation remains a problem, but it can now be divided into two parts: inflation itself and electricity prices. I believe that while inflation, excluding electricity, has decreased.
The interest rate in the country is closely related to inflation and the cost of living. When inflation was high, the interest rate also increased. Now, as the interest rate continuously decreases, it indicates a reduction in inflation. However, some may not be willing to accept this. The electricity issue is certainly a major challenge for this government, and until a solution is found, the criticism will continue. But the current government’s successes on the economic front cannot be overlooked.
Those who are influenced by negative propaganda and believe that the government has failed need to reconsider. An environment is being created that the establishment is dissatisfied with the current government’s economic performance. I believe this is not true. The current situation shows that, despite the government being in office for less than six months, significant economic stability has been achieved, which is a major success for Shehbaz Sharif. This achievement is recognized by the country’s stakeholders. Shehbaz Sharif’s economic successes suggest that if given a full opportunity, he could transform Pakistan’s economic landscape and steer the economy out of troubled waters. Thus, we should not fall victim to negative propaganda.
It is true that we are very interested in politics, and Shehbaz Sharif is not currently focusing on politics. His attention is on economic issues, and his statements primarily relate to economic recovery meetings. People are missing political engagement. However, the important question is whether he is doing something wrong.
Is this the time for him to focus on politics or to stabilize Pakistan economically? I believe he understands that the time for politics will come once economic stability is achieved. If economic recovery happens, there will be plenty of time for politics. But without economic recovery, there will be no room for political engagement. Perhaps this is why Shehbaz Sharif’s political presence seems less noticeable these days. However, what he is doing is likely what he should be doing for the country’s benefit.