Congratulations are in order. According to Business Recorder report last Saturday, Prime Minister Nawaz Sharif has decided to give performance targets to every ministry, and, to start with, he is soon expected to sign performance contracts with the ministers of each of the ten important ministries. (See: BR story Performance contracts with ministries: government takes novel steps to improve governance, for the list of those ten ministries)
It is official. K-Electric will shed the load for all and sundry, at least for now. Not that the citizens will now go through something they have not been going through for the past ten days. Only that it is now official.
While K Electrics success story shrivels away with severe unending and unannounced power cuts in Karachi, the Ministry of Water and Power has adopted the firms practice of load management, at least as per the ad it published in the print media last week.
How quickly things change on the global stage, one can judge from the Greek Crisis. On June 22 at the Euro summit, the leftist Greek government presented a proposal that would have broken the five-month deadlock between Greece and its lenders. All indications were that European movers and shakers and the IMF were almost ready to agree to a new proposal. However, as it happens when the master knows that the slave is desperate they ask for do more. The IMF and the Germans asked the Greek government to cut and take additional anti-social measures in the nations social security and pension system.
Everyone knows the vitality of a country’s service sector and its contribution to GDP – in the case of Pakistan, it’s over 58 percent – but what of a service sector’s contribution to the external sector?
Data from the SBP reveals that as of FY14, Pakistan’s service exports formed just over 2 percent of total GDP that year. Compare that now with India, where the service sector not only contributes over 67 percent to GDP, but service exports as of FY13 stood at around 8 percent of GDP.
IMF’s conditions – tick mark; polices to spur growth – a big no! That is the hallmark of Dar’s economic pragmatism. The seventh IMF review has been passed with flying colours but it wasn’t considered noteworthy to mention the need to move beyond stabilization for attaining growth momentum. There seems to be no pondering on negotiation for setting the targets for generating employment, increasing industrialization or defusing technology to enhance productivity.
Interesting consumer friendly trends are emerging in Pakistan’s automobile industry. For one, there is growing realisation that the automobile economy cannot be fuelled by rent-seeking any longer. Ergo, the liberalization policy, admittedly far from being ideal, has already jump started. For another, new players have entered the market (think FAW) or have expressed interest of entering the market (think Volkswagen, Renault).