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Economic Crunch and Sinking SOEs

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Economic Crunch and Sinking SOEs

M.H. Rehman

Significance of economic stability for any country cannot be overemphasized, and in the presence of a constant drain on an economy, no matter how strong, economic stability will always remain a dream. Systemic fault lines in an economy—and that too formed and forged on political considerations—can tumble the whole economy if not addressed on war footings. The economic quagmire Pakistan finds itself in for the last many years has a lot to do with huge drain on an already constrained fiscal space by the sinking State-Owned Enterprises (SOEs). This is a multiple-edged sword, which, by taking a significant chunk of federal expenditure away from productive uses, deprives the economy of much-needed breathing space and value addition.

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