The countrys economic institutions seem to be getting more secretive by the day. Unlike his media savvy predecessors, the current Finance Minister is perhaps too shy or unsure, to speak publicly.
The Deputy Chairman of the Planning Commission used to raise a hue and cry about the lack of implementation of the New Growth Strategy, but he too has kept mum lately.
Governor State Bank of Pakistan used to be able to field questions from the press. But that was before the infamous interaction with the Wall Street Journal.
On the other hand, the International Monetary Fund (IMF) has held the most candid of interactions with local journalists in Islamabad, last week. Ironic, isn it?
The words spelt out by the IMF, should have been uttered by the Finance Ministry, SBP, or both. Sadly, transparency and simple responsibility have been shrugged off by both institutions. The central bank, which has been commended in the past for its timely release of detailed data, is now sitting on its hands.
SBP had been on the path to improvement under the watchful eyes of Saleem Raza and Shahid Kardar; while Shaukat Tarin as Finance Minister had also guarded the independence of SBP. At the time, the practice of releasing the minutes of the meeting of the Monetary Policy Committee was initiated; a move that lent transparency and insight to the markets.
Unfortunately, now that Committee has been disbanded and the Finance Ministry has all but grabbed the reins on Monetary Policy decisions.
Whats more, neither institution felt the urge to offer an explanation for failing to convene the meeting of the Monetary and Fiscal Policies Coordination Board. Perhaps Little Johnny doesn want to bring home the damning report card of unbridled Government borrowing from the banking system and its role in perpetuating economic doldrums.
Regular interaction between strategists on the fiscal and monetary sides is imperative, especially where the government is crowding out banks lending to private sector and, employment generation and economic growth are barely crawling. SBP must also assert its independence in using monetary tools to balance interest rates, inflation and the exchange rate; not to mention pointing out an actionable strategy to settle circular debt and improve government revenues.
The ostrich approach of the central bank to dodge the edgy questions of journalists and analysts alike cannot persist ad infinitum. The annual report of SBP, which should have been printed in October 2012, will eventually have to be made public.
In any case, the IMF has already re-adjusted its forecast for macro-economic indicators and the ugly picture is now downright horrendous. The Fund is even discussing intricacies of a fresh programme in public by now. Hopefully the Ministry of Finance and SBP will stop hitting the snooze button on their bedside tables, one of these days.