Pride News Daily NEWS
Related Articles
Zahid Rabbani
It is a stark reality that Pakistan was one of the few countries that grew by 6 percent each year between 1960 and 1990 and reduced the rate of poverty to as low as 18 percent. If our dear homeland is able to fulfill some prerequisites, it may achieve the goal of doubling the per-capita income and reducing the poverty by half.
These prerequisites are favorable international economic environments, fruitful integration of Pakistan into the international economy, the pursuit of rigorous, sincere, and steady economic policies, solid institutional delivery and governance structure, investment in physical infrastructure and human development, and nonstop political stability and peaceful security conditions.
Pakistan has been a comparatively fast-growing economy in comparison to other developing countries but has lagged far behind the dynamic economies of East Asia and China. It was a leader of the pack in South Asia until 1990.
Political instability and frequent changes of governments, poor governance, economic sanctions, and an unfavorable external environment brought about a decline in Pakistan’s growth rates in the decade of the 1990s below the trend and resulted in macroeconomic instability.
The rapidity at which Pakistan effectively integrates into the global goods, services, financial and labor markets will decide the degree of benefits to our external sector. In absence of both diversification of exports in composition as well as markets, the chances are that we will lag behind other countries.
The outlook, emphasis, and endeavors of the exporters have to undergo a fundamental change whereby attention to labor productivity, efficiency within the firm and plant, aggressive marketing, and research and development should replace the traditional model of looking to the government for concessions and subsidies.
The policymakers in Pakistan should persistently continue pursuing sound, credible, and consistent economic policies. Disjointed, parochial, and turf-protecting decision-making should give way to a more reciprocal and collaborative process.
A constant feeling of euphoria can lull the policymakers into a false sense of smugness and thereby make them less watchful and responsive. A vigilant and continuous hard look at the economic developments and timely corrective actions should be their main concern.
Financial accountability can certainly act as a defense against unwarranted borrowing but there may be other policy lapses or delayed responses, which can cause damage. For example, extra-budgetary and contingent liabilities of public sector corporations can create monetary stress.
The intermediation between good policies and their effect on the lives of the majority of citizens takes place through strong institutions and a well-functioning governance framework. Devolution of powers to local governments is one of the significant measures that can do wonders.
The persistent hesitancy to part with powers by the provincial governments, the lack of supporting infrastructure, absence of capacity building at lower levels, clogging of systems, and outdated procedures are some of the constraints that have not made this tier of government effective so far.
Civil Services will have to be made more responsive to meet the needs of the common person and carry out the basic functions of the State objectively, transparently, and efficiently. Accountability has to be built into the system rather than extraneously prescribed. Most of our key institutions have lost their way and have to be brought back to their original track.
Supply of critical infrastructural facilities such as power, natural gas, pipelines and storage, roads and railways, urban mass transit, water supply and sewerage, ports, and civil aviation have to keep pace with the growing demands of the industry, commerce, and general public.
The government in spite of increased development expenditure outlays would not be able to meet this demand in any meaningful way. Public-private partnerships in both capital investment, as well as operations and maintenance, should be encouraged.
