Results of Shortfall of Budget

Government of Pakistan is falsifying the appraisals of oodleofmoney. If this falsification is not stopped, then in documents, the rate of oodleofmoney can decrease   6-7% in the current financial year. Budget shortfall (deficit), which is equal to 10-11% of GDP, will expand the debit of current accounts.

In the absence of foreign, reliable sources of import of money, when Pakistan is out of IMF program, it’ll be a challenge for Pakistan to fill up even a small shortfall of budget. Payable loans of $6,000,000,000 will swallow up the treasure of only $ 4.5 billion of State Bank of Pakistan. Lack of capital or absence of capital will decrease the value of our currency rapidly. Just imagine, what will the value of our currency?  How it’ll affect the prices of oil and electricity? Who’ll trust our “Letter of Credits”? What’ll be the condition of economic growth? Everyone knows the answers of these questions. It doesn’t mean but the destruction in the country.

Then what can stop the crises?

Pakistan should apply for new a program of IMF as early as possible. It’ll get rid of the uncertain conditions about the arrival of foreign investment. Pakistan has to follow a strict financial administration but the government of Pakistan didn’t adopt these manners in past. If it is done, pressure on accounts will be decreased moreover the arrival of subvention from fellow countries will increase the treasure of State Bank of Pakistan.

A strict financial administration, arrival of capital from fellow countries and a new program of IMF are the only way to escape lurid economic crises.

Is the government is ready to implement a strict economic policy?

The answer is possibly “No”.

Then it is possible, people of Pakistan have to face unemployment, increasing pressure of oodleofmoney, decrement in real income, confusing crises of oil and gas, ending of authority of government and the bad conditions of Law and Order.