IN 1992, Bill Clinton ran his campaign for US presidency on three slogans, one of which was ‘It’s the economy, stupid’. In the backdrop of the economic downturn of the early 1990s, Clinton’s focus on economic revival resonated well with his voters, and within three years, economic growth picked up. Ever since, the phrase ‘It’s the economy, stupid’ has been used extensively to emphasise the pivotal role of economic management in a nation’s prosperity.
In Pakistan today, the imperative of economic revival can hardly be overemphasised. For decades, we have been living beyond our means, collecting a mountain of debt along the way. Interest payments consume the bulk of our revenues, and perpetual loans are sought to run the government. Effectively, that means much of what the government does is with borrowed money. This is unsustainable; either we increase our revenues, or reduce our expenses — preferably both.