DAWN Editorials - 11th february2025

[faheemustad]

IMF scrutiny

THE technical IMF mission, which is taking stock of Pakistan’s economic governance structure and its vulnerability to corruption, is expected to widen the focus of the reform effort to a broader range of institutional restructuring for inclusive and sustained growth.

The mission will be in the capital for a week to scrutinise the “severity of corruption vulnerabilities” across six core state functions: fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and the AML/CFT regime.

It is expected to engage with numerous stakeholders, including the judicial, State Bank and SECP authorities, election bodies, finance and revenue officials, and others to review their processes.

The review of the judicial and regulatory systems is part of the present loan programme — Pakistan has committed to the Fund that it will strengthen its institutional capacities to fight corruption, support inclusive growth, and provide a level playing field for businesses and investment.

Following the examination, the lender will share its ‘Governance and Corruption Diagnostic Assessment’ findings with the government by July as part of the $7bn funding programme. The assessment will analyse governance and corruption vulnerabilities, and identify priority structural reforms. It is expected to help the government take action to address corruption and strengthen integrity and governance to promote transparency.

Pakistan’s unfinished reform agenda has mostly focused on tax, trade, exchange, monetary policy, and other areas. While these areas are crucial and in dire need of structural changes, our problems go much deeper.

The larger picture requires our policymakers to not just prioritise economic fundamentals but also our justice system, law enforcement, education, healthcare, and the bureaucracy, among others. Strengthening these foundations of the economic superstructure will help make the economy competitive and boost growth.


Without these, nothing will work to strengthen productivity, tax revenues, and trade, or to attract investment, especially foreign private investment, the biggest source of non-debt-creating inflows.

For example, a handicapped corrupt justice system unable to protect investors against the breach of contracts or the high-handedness of corrupt officials is a far bigger factor in scaring away foreign capital to other destinations than the nation’s unfair tax system and other market imbalances.

Similarly, no one would want to invest in a country where only illiterate or semi-literate labour with poor skills and low productivity — a direct result of poverty, lack of education and health challenges — is available. The Fund’s diagnoses of issues in our judicial and regulatory system should hopefully prepare the ground for the much broader institutional reforms beyond the ones to which the IMF loan is tied.

Published in Dawn, February 11th, 2025


Shadow voices

OVER the weekend, another ‘open letter’ addressed to the army chief and attributed to former prime minister Imran Khan was posted on social media. The long missive gained considerable traction, as anything related or attributed to the jailed ex-premier usually does, with many discussing, dissecting and debating its contents and what their implications could mean in the present political context. But the question also arose: were these Mr Khan’s own words, or someone else’s version of what he may have said during his limited interactions with his confidants and legal counsels? After all, his first ‘letter’, too, was apparently never inked on paper.

The jailed leader does not seem to have any facility to correspond directly with the outside world. He certainly does not have access to social media. His surrogates frequently tussle over who gets to meet him and who does not, and Mr Khan has often complained that he has little control over those allowed to visit him. There are very few within the PTI who seem to know who actually runs the former prime minister’s social media accounts, and quite a few have previously expressed their exasperation with the more hard-line stance taken by them, which has undermined their own efforts at finding diplomatic solutions to the party’s problems. This presents a complicated situation. With quite a few groups within the party vying for influence and control of the official narrative, there is no way to tell what the PTI’s official stance is on key matters. However, as bad as this is for the party, it is also dangerous for the state. The policy to tightly control Mr Khan’s visibility in mainstream media and to keep him silenced and sequestered has inadvertently increased ordinary people’s reliance on alternative mediums for information. Mr Khan is followed by millions on social media. This means that whatever gets posted from his accounts gets immense visibility, even if it is not exactly what he may be thinking at any given point. So far, Mr Khan has not had any known issues with how his accounts are run. However, the danger remains that his accounts’ operators may cause much harm, even if inadvertently, over a small miscommunication. All stakeholders need to avoid anything which may escalate tensions and create an environment where hostilities spin out of control.

Published in Dawn, February 11th, 2025


Paradise at a premium

PAKISTAN’S recent triumph at the New York Travel and Adventure Show 2025, winning the Best Partner Pavilion Award, marks a significant milestone for our tourism sector. This recognition not only validates Gilgit-Baltistan’s extraordinary appeal but also positions Pakistan prominently on the global tourism map. The enthusiastic response from international visitors, particularly those interested in mountaineering and adventure tourism, suggests promising prospects for a region blessed with five peaks exceeding 8,000m. However, this success brings with it a profound responsibility. The rising influx of tourists to GB presents several problems. Among the most concerning issues is environmental degradation. Popular destinations like Hunza, Skardu, and Fairy Meadows have seen a surge in littering, deforestation, and water pollution. Similarly, reckless construction of hotels and guesthouses is altering the landscape without due regard for environmental impact. Equally troubling is the cultural erosion. Locals report increasing incidents of disrespect towards their traditions and personal spaces. Domestic tourists, in particular, have been observed violating social norms, and even harassing local women. The habit of inscribing names on ancient forts and monuments, playing loud music, and intruding into private homes further points to the lack of manners.

Infrastructure is another area of concern. The Karakoram Highway and mountain roads face mounting pressure from tourist traffic, while hospitals, and water and electricity supplies are also burdened. Economic benefits remain skewed, with outsiders owning most hotels and tour companies, while locals battle rising living costs. The government must act decisively: implementing environmental regulations, waste management systems, and sustainable development plans. Educational initiatives on cultural respect are essential. Most critically, policies must ensure tourism revenue benefits local communities rather than external investors. While global recognition deserves celebration, it should catalyse action. Otherwise, GB risks becoming a victim of its own success. That would be a market failure of Himalayan proportions.

Published in Dawn, February 11th, 2025