The Special Investment Facilitation Council (SIFC) for the economic revival of the country is the latest season in the longest running black comedy series called Winging Pakistan’s Economy. Those writing jokes in Islamabad and thereabouts did not get it twenty years ago; they didn’t get it five and ten years ago, and they aren’t getting it now: that you cannot wing economic governance.

Back in the days of the most recent outright dictatorship, the Musharraf era, they hired technocrats. But, with apologies to Warren Buffet, when the tide of cheap money was over, everyone found out that Pakistan’s economy was swimming naked.

Then came the architects of 18th amendment, who had the intellectual wherewithal of devolving powers to the provinces but did not have the wisdom (and will) for political, fiscal and administrative devolution down to third tier of government. Nor did they have the wisdom to constitutionally strengthen the mechanism and institutes of coordination among federating units via platforms like the Council of Common Interest (CCI), ministry for inter provincial coordination (MIPC) and such others. They also passed the Special Economic Zones (SEZ) Act 2012, as an instrumental element of the plan to attract FDIs. But that remained a bummer too because the SEZs didn’t arrest speculation of industrial real estate, nor ensure provision of public goods or the promised one-window.

Later, the businessmen’s party took charge, following which the CPEC was launched with much fanfare. But despite being on ‘one page’ in their early phase and despite bowing to the Chinese, the SEZs remained a key pillar of the plan to attract FDI, because of its SEZ’s conceptualization as island of excellence or laboratory for policy reforms. However, it remained a non-starter, as in the absence of legal reforms and ensuing change in rules of business, procedures and so forth, the one-window kept opening to new windows and investors kept running around even in the SEZ. (For more details on SEZs, see SBP’s special chapter of its State of Pakistan’s Economy report for FY21).

Then came those with promises of big team of corruption free professionals. The professionals did not arrive – and those came as special assistants to the PM inevitably left for want of respect and the power to institute change. When the captain and his team realized their inability to fix the cogs of governance, they created another joke called the CPEC Authority (see: CPEC Authority, published August 21, 2019) the existence of which this column had lamented from the very first day. The Authority eventually met its fateful end and has recently been disbanded.

All this while, the Ease of Doing Business reforms were being chased via the PM secretariat and the Board of Investment. But in the absence of constitutional and legal reforms and ensuing change in rules of business, sectoral and other policies, procedures and so forth, improvements – notwithstanding the early celebration and loud hurrahs - were marginal and remained insufficient to attract FDI.

Considering this, the question is if the CPEC Authority that enjoyed the clout of Islamabad’s thereabouts didn’t deliver then, how can their presence on SIFC ensure that SIFC delivers. Second, the SIFC cannot make laws, policies, sectoral procedures, and rules of business. Nor can it enforce change of laws etc. At best it remains a body for coordination. But then there are already various platforms for coordination such as the CCI, and the MIPC. The planning commission too has various such platforms, as do other line ministries.

The job of the politicians is to make laws, and to fix governance. The SIFC is testimony to the fact that much like their predecessors in the last twenty odd years, the current set of those in power also can’t make laws and fix governance. They will keep winging it for as long they are in power. By the end of this year, a new set of those wanting to write jokes may come in power and you will have another season of Winging Pakistan’s Economy.