Economy is considered as the backbone of any state, either a developed or under developing, but its dynamics is consistent upon both the domestic and international factors where a domain of dependency can easily be ascertained.

As far as the International realm is concerned, SAPs (Structural Adjustment Programmes) are economic way head for the developing countries devised by WB (World Bank) and IMF (International Monetary Fund) which includes trade liberalization, market deregulation, privatization and elimination of social welfare programmes where few adopt restricted immigration policy as well. The Enhanced Structural Adjustment Facility is an IMF development to ensure smooth running of macroeconomic policies and SAPs via loans or low interest subsidies. The WB’s due course in Pakistan dates back to 1971 when cyclone devastated East-Pakistan and we got $25 million IDA (International Development Association) assistance. The WB resident mission established in 1979, whereas membership of IMF was secured in 1988 with the formulation of Privatization Commission (1991) and restructuring agreement.

From 1988 to 2014, it was certainly unnecessary what the cabinet said, so as privatization policy was ruling and assets were sold at cheaper a price which also enabled corrupt politicians to make billions out of this scheme including Nawaz Sharif, Benazir Bhutto, Pervaiz Musharraf etc. Selective group took control of open market policy where cash was received through real estate and currency speculations without any restriction at all. This eventually led to third factor i.e. high market price for electricity, oil, gas, food and other accessories. Now, can we guess how domestic mob agitation is related to international economic platform? Somehow, we were following the path of Nigeria that acquires US $80 billion of annual oil exports but is ridden with economic inequalities and extreme poverty.

It is a matter of concern that, during the given time period, the governors of State Bank of Pakistan were employees of either IMF or WB in the past. We should ask why such lucrative jobs were left to run the financial affairs of Pakistan. The analysis of past 20 years with respect to economic, financial and monetary policies may depict the answer but to some extent. Yes, it is the very same restructuring scheme which has made Reko diq under the hold of foreign companies and not the national government.

This is what the world-systems theory argues for where the main theme revolves under the notion of core, periphery and semi-periphery states. In addition, globalization after-affairs depicts the mentioned consequential approach as one of its strands is known for economic interaction across the world. The intended globalized structure helps core states to have evolved economy, strong central government and institutions, independent decision making, specialized financed and service industry, new technologies, effective tax base, strong bourgeois class and military complex, whereas the alike elements are absent in third world countries or we can say denied, deliberately. In the very identical manner, social and political poles are determined by international sphere, subsequently.

Let’s analyze how current economic situation is having pitfall after the 2014 scenario:

PML-N tenure (2013-18) is much characterized by the deteriorating condition of economy with risen external debt and depleting foreign reserves. The good point during the tenure is that foreign reserves reached $15.6bn with inflation rate of 3.3 percent. In addition, tax directory, tax amnesty scheme and tax reforms commission had put things on track. Annual GDP (Gross Domestic Product) reached 4.2 percent which is somehow the progressing aspect, especially for the given time period of 2015-16.

But, the other side of story does exist as well. This well-being of economy happened because of sharp decline of oil prices, internationally. If the 70% decline wouldn't have happened, there would be inflation of about 9-10% with foreign reserves of $8bn only. Furthermore, the GDP around the five year tenure stagnated at 3 percent. Despite falling prices, governmental policies emerged to keep the prices high in order to generate revenue. Only 34 out of 70 percent fall of oil prices was relegated to market with 10 percent hike of sugar prices knowing that international market has got 13 percent down. As far as wheat is concerned, support prices also witnessed increase at a time in Pakistan where prices were already deviating from international standards, significantly. Be that as it may, the FBR revenue is largely dependent on increased sale taxes on petroleum, additional customs and regulatory duties on oil imports, introduction of new taxes, rate enhancement of new taxes etc.

The worst case scenario is still awaiting us. The PML-N government did not only fail in institutional reforms but eradication of corruption also, especially, in case of LNG and CPEC projects. There is undue secrecy which is leading to zero transparency and accountability reports. Besides, the foreign debt has reached $22 billion which will rule even for the next many governmental forums.

Although there have been several boons and bust for the country's GDP track record, but the last boon observed was in 2005 and after that indicators have been falling, day by day. Thus, next government will barely be able to uplift imports of just one month and, yes, there is alarming fiscal deficit around the corner. Dept. servicing, defense expenditure and other administrative spheres would lead to more negative impacts and balance of payment would prove to be mammoth hurdle.

Understandably, the overnight miracles must not be expected as there exists no free lunch in business. Fortunately or may be unfortunately, one such vector is there which could give us $200-300 million per annum if we get just 5-10 per cent improvement. The area is energy sector which is largely dependent on fiscal cushions and vice versa. In order to resolve the dilemma, we can lower the cost of electricity generation where for every unit (kmh) we are losing Rs 3 electricity generation from oil suits Gulf states not LDCs (less developed Countries) like us. Recovery of bills will also pave a suitable road for uneven progress of our economic platform.

Besides, five sectors of the country can evolve the aggravated situated as per the study of Karachi Stock Exchange i.e. textile, automotive, petroleum, chemicals/fertilizers, and FMCG. If planning and proper policy framework occurs then positive results will await the intended prosperity. Same result has been depicted by one of the Harvard University Study but in the context of CPEC (China-Pakistan Economic Corridor) stability. It says the economic growth of Pakistan carries possibilities to surpass even China’s in the next twenty years. Additionally, what must be avoided is the political instability which could be fatal for the development. Asien and Veiga (2011) paper by IMF says, “An additional cabinet change (a new premier is named and/or 50 per cent of cabinet posts are occupied by new ministers) reduces the annual real GDP per capita growth rate by 2.39 percentage points.”

There has been much politicization of economic talks. Let's hope the new government will take some practical steps. Otherwise, blaming predecessors and doing nothing will further aggravate the already beleaguered situation.