Challenging path to better tomorrow

THE EDITOR: Few can doubt the intentions of the new government to fulfil its promises. However, the question remains whether it can achieve these goals. Consider the following:

Almost every breakfast item – whether it's cereal, bread, roti, or doubles – requires ingredients purchased with foreign exchange. Healthcare products, fuel for vehicles, and daily sustenance items are largely financed through foreign exchange. Additionally, major items such as trucks, cars, construction equipment, and industrial sector tools also contribute to the daily demands for foreign currency.

The country faces an increasing demand for hard currency to maintain free healthcare services, infrastructure, and road and bridge repairs, as well as to service foreign debt. All these obligations necessitate foreign funds rather than local tax revenue.

Over the years there has been a decline in oil and gas production, which was previously the primary source of foreign income. While manufacturing, agriculture, and tourism have the potential to bolster foreign income, there has been no strategic plan for meaningful investment and financial reward in these sectors.

The reality is that any initiatives undertaken would require several years before substantial increases in foreign exchange earnings can be realised – whether through new gas sources around TT, reopening Petrotrin, tourism initiatives, major agricultural investments, or discovering new oil and gas reserves.

For the government to sustain current spending levels and deliver on its promises, it must identify new income sources. The extent to which the country's foreign exchange reserves at the Central Bank and the Heritage and Stabilisation Fund are tied up as collateral remains unclear. This could allow for certain levels of borrowing.

Additionally, a strategic long-term economic plan for TT is essential. Achieving this requires the engagement of our top minds and planners, irrespective of political affiliation.

It is crucial for citizens to unite and contribute to rebuilding the nation and positioning TT as an economic powerhouse capable of meeting the financial demands of a changing global landscape.

STEVE ALVAREZ

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