Averting a Collapse

A few days ago a permanent forum was launched in New York to help raise billions of dollars to avert a possible economic collapse in Pakistan. This forum, which will be called The Friends of Pakistan, will hold its first meeting in Abu Dhabi next month. The decision to form such a body was made at a meeting of some of the world’s richest nations, that also have close ties to Pakistan, and want to help. “I don’t want them to give us the fish. I want to learn how to fish and do it myself,” said President Asif Ali Zardari while explaining what Pakistan expected from the new forum.
The report from DAWN, from which the above paragraphs have been taken, went on to add that about a dozen of the world’s leaders who had attended a meeting in New York summoned by the US and Britain, jointly launched a group to help Pakistan after realizing the seriousness of the economic crisis confronting the country.
According to the DAWN report, Pakistan’s foreign currency reserves are falling fast and if forward liabilities are included, real reserves may go down to $3 billion, an amount which cannot even meet Pakistan’s import bill of one month. “$10 to 15 billion is our immediate requirement,” Foreign Secretary, Salman Bashir told a meeting in New York. According to him, the World Bank has agreed to release $500 million while others like the European Union have offered to help, in particular with support to food and economic stabilization programmes.
With regularly falling foreign currency reserves and real reserves going down to $3 million, which cannot ever meet the import bill of one whole month, the dyes are heavily cast for an ensuing and rapid economic decline in Pakistan.
One can but hope and pray that measures to be taken will avert such a catastrophe with all its ensuing horrors and distressf.

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