As the general elections draw closer, major political parties are publishing their respective manifestos. Following closely after PTI published their party policies, the Pakistan Muslim League-Nawaz has also unveiled its Election Manifesto.
The core of the agenda is to revive the economy and the proposed strategy is not much different PTI’s prescription. Most points are similar to those suggested by their political opponents as well as those suggested by leading independent think tanks. That said, since the solutions to the current predicaments are known to all, this similarity can be expected.
The pro-export, pro-investment and pro-business policies historically differentiate PML-N from their traditional rivals, PPP. And the PML-N has shown that its actions are aligned with its rhetoric back in the 1990s.
The biggest economic challenge is to revive the ailing Investment-to-GDP ratio which is at its lowest ebb. And if history is our guide, then the PML-N is strongly equipped to gear up domestic investment. Similarly, this party’s stated solutions for the PSEs appear cogent and well-thought out.
However the autonomy of the State Bank of Pakistan may be at risk as the PML-N intends to “lower interest rates through effective monetary policy”, in its efforts to curb inflation to single digit.
The public spending by the PML-N led government in Punjab speaks for its commitment to infrastructure development.
When it comes to taxation, PML-N appears to be following the Republican route of lowering rates to encourage willful payment of taxes. This too is a business-friendly approach however, it is one that will only work if supplemented by a strong FBR.
However, none of these economic policies can run in isolation. Confidence cannot be restored unless militancy is stomped out and the Federation strengthened.