Session 15: Economic reforms a must!

When we talk of the Pakistani economy, it doesn’t evoke as big a reaction as the economies of India or China might. Nevertheless the Pakistani economy has extreme geo-stategic importance and must grow if Pakistan needs to have any chance at a viable future.

 I read today an article in “Dawn” titled “Applause for economy” which stated how the IMF and State bank have been applauding the economy. The State Bank was quoted saying that the economic indicators are moving “in a favorable direction” . Moody upgraded Pakistan’s debt rating from ‘positive to stable’. The IMF has also lauded the government’s “strong performance” but before we become excited about becoming the next economic super power lets understand that all these institutions have their own vested interests and what they say might not be totally true.

To improve the Pakistani economy the government needs to take serious policy decisions. Reforms are a need of an hour especially in the bureaucracy. Tax leakages need to be stopped, tax exemptions need to be done away with and the government needs to start deregulating large sections of the economy, especially the power sector. The competition commission of Pakistan needs to be strengthened and NAB and other accountability bodies need to be empowered to curb economic corruption.

Lastly the common man doesn’t care about fancy figures. They only care about the situation on the ground and sadly that is not representative of the tall claims of the government.