Consistency in policy vital to improve economic conditions: Sartaj

There is no single economic growth model that has been consistently followed by Pakistan over time, former Finance Minister Sartaj Aziz revealed to this correspondent. Political uncertainty in the country can be declared, as one of the main causes that has given rise to inconsistent growth policies in Pakistan, he added.
He said that consistency in growth policies is necessary to improve economic conditions in Pakistan. "The growth policies should target a rise in labour and capital productivity. The more skilled the labour the more productive it would be for the economy", Sartaj Aziz said.
Sartaj Aziz said that during his era (1991-93) economic reforms were introduced to increase foreign investment in Pakistan and for that purpose six committees were established. He said that 100 day economic reform plan has been very useful. He said that at that particular time almost all the important institutions were nationalised that led to considerable reduction in institutional efficiency.
Aziz said that major reforms were introduced in March 1997 in the industrial sector through grant of incentives. Likewise by cutting the duty on fertilisers record wheat crop (22 billion tons) had been produced. "In order to get maximum output of the crop, the prices of the input were kept below the average cost of production", Sartaj Aziz maintained.
While commenting on the consumer-based growth policy during the Musharraf era he said, "in the post 9/11 period there was a massive increase in liquidity, which created artificial surplus stocks, rising real estate prices and surplus in the banking sector". He said that the policies introduced during the Musharraf era were import intensive which increased the import bill up to 20 billion dollars and due to high import bill the currency depreciated accounting for inflation in double digits (12-13 pc).