Economic discipline, productivity: PCP working out much-needed growth strategy

The Planning Commission of Pakistan (PCP) is working out much-needed economic growth strategy by focusing on economic discipline and productivity. The Deputy Chairman Planning Commission of Pakistan (PCP) Dr Nadeem-ul-Haq stated this while speaking at a dialogue on Economic Growth Challenges for Pakistan arranged by the Lahore Chamber of Commerce and Industry on Saturday.
The strategy being evolved would not merely be a policy but it actually would be an Agenda of Change, he added. The Deputy Chairman PCP said that unnecessary regulations, distortion in taxes and subsidies have destroyed the domestic commerce. Thus the strategy being evolved by the Planning Commission of Pakistan (PCP) would be suggesting a reduced government influence on economy that today has grown to undesirable proportions, he added.
Dr Nadeem further said that the country needs to have responsible fiscal and monetary policies for bringing economic discipline. We also need to restructure all the 22 Public Sector Enterprises, which are eating up Rs 300 billion annually. Similarly, we need to rationalise Public Sector Development Programme and above all a cut in heavy bank borrowing by the government, he maintained. For enhancing productivity that is a prerequisite to the economic growth, he said that market reforms are the key as the lack of incentives for innovation and entrepreneurship has pushed us to the wall.
The LCCI Senior Vice President Sheikh Mohammad Arshad while calling for development of a whole new mechanism to get rid of issues like bad governance, deteriorating law and order situation, heavy government borrowings and low tax-to-GDP ratio. He said that a sustained economic growth for many years to come would only be able to bring this country in the list of Middle Income Group countries.
Sheikh Mohammad Arshad said that the government would have to strengthen the private sector as the private sector should be the driver of growth in open market environment that rewards efficiency, innovation and entrepreneurship while the government should play the role of a facilitator that protects public interests and rights.
He said that the government would have to come up with a package of incentives for the private sector so that it could be able to play a dominant role in the growth process and economic activity.
Leading economist Saqib Sherani said that unless and until institutional issues are resolved, the economy would continue to face boom-bust growth cycles. He said that accountability at levels should be a must. Referring India, he said that the Indian Prime Minister is not only accountable to the Parliament but to its committees and the court of law.
Saqib Sherani said that the people having vested interests are not in favour of change therefore, the society would have to exert its pressure to bring about the necessary change. Dr Qais Aslam said that the biggest challenge that is about to come is environment challenge. Therefore, both the government and the private sector should make elaborate arrangement to cope with this challenge.
Former LCCI President and former Wapda Chairman Tariq Hameed in his concluding remarks said that we would have to adopt modern techniques and technology to wear off economic slowdown phenomenon. The LCCI former Presidents Bashir A Buksh, Sheikh Mohammad Asif, Shahid Hassan Sheikh, PIAF Chairman Sohail Lashari, Yaqoob Tahir Izhar and Almas Haider also spoke on the occasion.