Dr Nadeem ul Haque, Deputy Chairman, Planning Commission, is a well-known Pakistani economist with extensive experience in the international policy and research environment. In a 27-year career at the IMF, he served as Advisor in the Research Department and the IMF Institute and also as IMF Resident Representative in Sri Lanka and Egypt.
He has also worked at the World Bank and International Food Policy Research Institute (IFPRI). Dr Haque has also contributed significantly to economic policymaking and research in Pakistan, including in his roles as Trade Policy Advisor to Federal Minister of Commerce and as Vice Chancellor of Pakistan Institute of Development Economics.
Here are a few poll findings that reflect the state of entrepreneurial sprit in Pakistan:
Only 29 percent of Pakistanis claim to have thought about starting their business as opposed to global average of 53 percent, according to Gallup Pakistan findings.
The poll conducted last month also found out that new business ideas are not highly valued in the country, whereas only 37 percent (against global average of 60 percent) feel confident that their business ideas can be effectively implemented in Pakistan.
These are the kind of dynamics that Nadeem-Ul-Haq, Deputy Chairman of the Planning Commission, wants to change. "The most important thing for the growth strategy is to make people understand what is required, and then to make the media understand; once they have realised what needs to be done, their voice will reach the politicians, he told BR Research in Islamabad.
The point being both the private and the public sector need to pull up their socks. "The most important thing to do is to start measuring productivity; put a sign outside all offices stating, 'what is your productivity?'" he said, stressing on the need to harness creativity at the same time.
Giving an example of the power sector, Nadeem asserted that if the managers of power firms are given an incentive to reduce losses, the trick might work. "Tell them that you are making this much loss, reduce it and if next year you make profits, 10 percent of that is yours," he said.
Arguing in favour of learning lessons from abroad, Nadeem, cited the example of IT giant Google. "They don't ask you when you come and go, when you take a day off or if you are doing your work. Yet, their employees are working 10 times harder than us," he said.
He added that several Australian firms give their workers two days off each month, and they just ask them to bring a creative idea on the table when they come back. "Then they sit and discuss all creative ideas, and they have been successful in inventing a lot of things just by this practice," he said.
Nadeem said similar principles can be applied to public offices. "It is foolish to think that cotton researchers in government offices would want to come up with improved research with the kind of incentives they are currently given, he said, adding that researchers should be given a share in production profits arising from their research and development. The idea, said Nadeem, has already been put forward to relevant authorities, but the decision is currently pending.
Changes like these, he said, will help in humanising the institutions. "Let them become productive, open up the market place, let the markets become more competitive - forget all the big moves, take these small ones and let the system run for a while like this, there will be new fields, new things will come in," he contended, while stressing on the government's role as a director and enabler alone.
"There is misconception that the economy is like a Lego (game); people think that everything is under control if you follow the plan. But life is not like that! When you are dealing with the economy and real people, the government cannot tell you what to do and what not to do; direction and creating an enabling the environment is my job," he said.
CHANGING MINDSETS But when asked if direction and an enabling environment would be of any use in the absence of the huge sums of money that are needed to dole out the economy, Nadeem rebuffed the very notion of it.
"It is not as if we never got any money in the past; we received a lot of money but where did it all go? What did we do with it? Why is there no growth? Agreed, we need money for growth, but that is not the only thing we need; change in our mindset is the most important element for growth."
Advocating that charity begins at home, he urged the masses to correct themselves first, before pointing elsewhere. "Why do we steal our own electricity? Why do we steal our own oil? Why do we waste these resources? Why do we have an inefficient and unproductive lifestyle?" he questioned rhetorically.
Nadeem pins his hope on increasing level of awareness amongst the masses. "The knowledge of the fact that elite don't pay taxes has become very common; the idea is spreading and it is taking a form. Similarly, 20 years ago, we had to tell the people what rent-seeking means, now they are aware," he added. He laments that while the society is talking about the problems "it is not talking about reforms; we are not talking about how to break it-when the idea will be widespread, there will be a way of breaking it," he said.
"Implementation will take place only when all of us, as responsible citizens of this country, think it is for the betterment of the country. If the people of this country decide they want to reform the economy, the leaders will have no choice but to follow," he added.
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