Last week a few economic observers and other stakeholders from the country’s economic and business community demanded that it is high time for the new government to spell out a clear-cut economic policy direction. The stock market is also reportedly full of such people, if the reasoning in brokerage house reports is any guide.
Those who better understand the workings of the government do not expect results with a short span of 100 days. This lot also understands too well that it is also too early for specific plans. Yet they also demand economic policy direction.
A host of ruling party’s plans and moves should be and have been a subject of criticism; see for instance see BR Research’s recent coverage titled Can the new Economic Advisory Council deliver?, PTI’s Council of Business Leaders and Compassion deficit. But that the time is nigh for the PTI to come with clear cut economic direction does not appear to be tenable.
For one, it has not even been a month since the federal cabinet took oath. Second, the promises of reforms made by the ruling party aren’t promised to be short-cut solutions. The party canvassed on real structural governance reforms, which is not the same as coming up with an economic or export package. And structural governance economic reforms, even the direction of it cannot be clearly spelled out within three weeks of office.
Third, the broad contours of economic policy direction are already provided in the party’s manifesto and its 100-day agenda. And in that light, a host of positive steps have already been taken. For instance, the proposed gas price hike and the likely increase in power tariffs as well. The formation of the EAC even though it has a few shortcomings. The first steps taken towards the transparency of CPEC. The formation of a seven-member privatisation commission. The constitution of task force on civil service reforms, which is led by Dr Ishrat Hussain and includes the likes of Shahid Kardar and Dr Nadeem ul-Haq. And also, of course the letter to provinces to reconstitute the National Finance Commission, a subject that does not usually get a lot of traction but is critical nevertheless.
These committees may or may not deliver. Pakistan is not stranger to committees that never achieve anything, so don’t be disappointed if these committees also fail to deliver. But in such a short span of time, it is futile to expect policy wonks to give a precise roadmap, when in fact reform itself is not a touch button process. Nor is reform a process without mistakes. Keep calm and carry on, for sources say it is only by September end, that much-awaited clear picture will emerge.
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