Dr Javed’s approach is vastly different from the Chicago Boys-styled economists’

That Business Recorder op-ed writer Dr Omer Javed writes with conviction and in a professional manner is a fact. His articulation and argumentation in relation to the subject of economics say it all.

In his latest article of a series of articles titled “Learning from China’s economic philosophy and policy”, for example, he has pointed out, among other things, that “A related aspect of the external sector is exchange rate management: while Pakistan—guided generally by the International Monetary Fund (IMF)—has maintained a flexible exchange rate regime, or at most a managed float, this approach has not allowed the authorities to be more ambitious in improving macroeconomic fundamentals.

Consequently, sources of foreign exchange—such as exports, foreign investment, and import substitution—are not being developed in a targeted, mission-oriented way through stronger government focus on private-sector incentives (like effectively developing Special Economic Zones [SEZs]) and the meaningful, broad-based utilization of State-Owned Enterprises (SOEs). Instead, the country could benefit from pegging its currency to a more stable and predictable currency, such as the US dollar or the RMB, to support exports and foreign investment in general.”

In my view, therefore, our policymakers need to draw a lesson or two from Dr Javed’s argument so as to reach an informed decision on firming up a strategy aimed at improving country’s macroeconomic fundamentals while navigating IMF conditions.

Whatever this learned writer has been saying over time constitutes sane advice which must be heeded by our policymakers.

Fahim Reza, Karachi

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