THE rupee, which had been of late in a state of constant decline, took a fresh nosedive against the dollar, losing 20 percent of its value on Wednesday. It however slightly regained on Thursday. Though this time most of the currencies the world over are dipping to record lows against the dollar, the reality is that we are the hardest hit by the situation. The flight of foreign investment, the depleting forex reserves and the ballooning trade deficit had certainly had a hand in aggravating the situation, but the problem lies in our inefficient economic managers and worsening political scene. Several months have passed since the formation of the political government and it is a pity that nothing significant has been done to fix the financial turbulence. Our forex reserves now stand at a paltry $9.4 billion. Fears are being expressed that if the trend continues for a little longer, the country might be making it to the list of the failed states. Our constantly deteriorating credit ratings by firms like the Moody's and Standard and Poor's had further strangled the chances of inflows of capital from abroad. The fallout of this picture is making itself felt in an appalling way. The record increase in the electricity charges by over 30 percent, as announced by Water and Power Minister Raja Pervaiz Ashraf on Wednesday, was nothing less than a shock for the people. Rather than admitting the government's failure to bridge the gap between supply and demand, he simply explained the matter away by holding the oil crisis responsible. Unfortunately, this may well push the country to the edge of a precipice because an increase in electricity tariff would naturally speed up an upward inflationary spiral. On the other hand, the high prices of edibles have made it impossible for the common man to buy essential food items and fulfil the religious obligation of fasting with ease. While it is difficult to dispute some analysts' opinion that there is little hope for economy's revival without foreign support, like the availability of Saudi oil facility or World Bank assistance, the fact remains that good governance with a sharp focus on the general public's welfare could still make a difference.