Pakistan’s Prime Minister Nawaz Sharif has made 65 foreign visits in two-and-a-half years. He has already set a new record in the nation’s history and if he continues with his passion, he can seriously challenge 90-year-old British Queen Elizabeth II, who has been to 116 countries during 265 official visits, over a period of 63 years.
According to information provided by the Ministry of Foreign Affairs in the National Assembly on a question asked by Pakistan People’s Party (PPP) leader Imran Zafari Laghari, the Pakistani prime minister spent nearly 200 days away from the country and these do not include his private, but regular, visits to Saudi Arabia and the UK. He has visited Britain 17 times, spending about two months in the UK, of which 32 days were listed as official stay while 24 were listed as transits. The travels cost the national exchequer a hefty sum of Rs638.276 million.
According to government ministers, his tours aimed at improving relations with the world and the national economy. However, the ground realities are otherwise. Pakistan’s trade deficit is widening and the foreign media has warned of serious internal and external threats, including default. Pakistan’s trade deficit has widened by over 4 percent during first seven months (July-January) of the current fiscal year over a year ago. It was $13.6 billion during July-January of FY2016 as against $13 billion of the same period of the last financial year, according to the latest data of the Pakistan Bureau of Statistics. The trade imbalance has widened as country’s exports are tumbling fast as compared to imports. Pakistan’s exports have been continuously declining. Its exports came down to $12.1 billion during July-January of FY2016 from $14.1 billion of the corresponding period of the last year, showing decline of 14.37 percent in one year. The imports reduced by 5.38 percent mainly due to a huge decline in oil and food prices in the international market. Pakistan imported commodities worth $25.7 billion during the first seven months of the ongoing financial year as against $27.2 billion of the previous year.
According to Bloomberg, bets are rising that Pakistan will default on its debt just as it starts to revive investor interest with a reduction in terrorist attacks. In a report, which the government termed baseless, it said credit default swaps protecting the nation’s debt against non-payment for five years surged 56 basis points to 620 points amid the global market sell-off. According to data compiled by Bloomberg, it is the highest since January 2015, and the steepest jump after Greece, Venezuela and Portugal among more than 50 sovereigns tracked. About 40 percent of Pakistan’s outstanding debt -- both local and foreign -- is due to mature in 2016, according to data. That’s roughly $45 billion, of which about 4.3 trillion rupees ($41 billion) is in local currency.
Since Nawaz Sharif took the IMF loan, Pakistan’s debt due by end-2016, has jumped about 79 percent. He’s also facing resistance in meeting IMF demands to privatise state-owned companies. The bulk of this year’s debt, some 2.4 trillion rupees ($23 billion), is due between July and September, and repayments will get tougher if borrowing costs rise more. The spread between Pakistan’s 10-year sovereign bond and similar-maturity U.S. Treasuries touched a one-year high. If Pakistan’s debt servicing costs rise, Nawaz Sharif doesn’t have much room to manoeuver. Already about 77 percent of the country’s 13 trillion rupees ($124 billion) budget for the year through June 30, is earmarked for interest and principal repayment on loans.
In the face of the serious issues, the prime minister’s globetrotting is ridiculous. He also spends at least two days a week in his Raiwind Palace with his family and friends. His casual approach towards his duties has compounded the problems of the country. In contrast, he has attended few sessions of the National Assembly, where public representative discuss local and national issues. He “graced” the National Assembly for few days when he was under pressure from sit-ins by Imran Khan and Dr. Tahirul Qadri. The situation is back to square one after the protests ended. He bypasses the parliament and takes crucial decisions only on the opinion of his close relatives.
He has deliberately overburdened himself with a number of portfolios, the most important being that of the foreign minister. A prime minister, who faces immense challenges, cannot deal with any other portfolio. The foreign minister is required to concentrate on vital issues, frequently call meetings of Foreign Office, meet foreign diplomats and undertake numerous foreign tours. The country is unlikely to get a full-time foreign minister during the rest of his tenure. It means, he will continue to take shelter in foreign tours from worsening public problems in the country for the rest of his term.
According to critics, expenditure on the prime minister’s foreign visits was much more than the statement released by the government. Even if the government’s claim is accepted, Rs638.276 million is not a negligible amount for a cash-strapped country, like Pakistan, where numerous departments face shortages of funds. Pakistan has been facing problems which are deep-rooted and have compounded after inaction by successive governments. The prime minister’s foreign tours have largely been fruitless as Pakistan’s foreign policy and foreign investment are in the doldrums. The prime minister had promised to end loadshedding in six months but power outages continue even in the winter.
Widespread corruption, large fiscal deficits, low expenditure on education and health, severe electricity and energy shortages, high inflation, rising prices, soaring unemployment and low economic growth are other issues. Successive governments in Pakistan failed to address the issues. The government faces huge challenges which are difficult to resolve. All the issues are decades-old and they are deeply entrenched in our society and will take decades to eliminate. The government will have to express its commitment to resolving them. The prime minister will have to lead by example. He should appoint a regular foreign minister and avoid unnecessary foreign visits. He will have to prove through his action he is serious about resolving public issues. He must know that public problems have compounded over the years and inaction will not work for long.
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