Differing with Tarin

In his article (Challenges and Prospects) published in an English daily, Finance Minister Shaukat Tarin has summed up nine priority areas identified for serious and sustained policy intervention. These are :1) macroeconomic stabilisation, 2) social protection; 3) agriculture; 4) energy; 5) improving industrial competitiveness; 6) infrastructure development through innovative use of public private partnership models; 7) increasing the depth of Capital Markets; 8) Human capital and 9) administrative and governance reforms.
On the face of it all these yet-to-be-taken-measures appear no more than those proverbial wishes that beggars would ride if these were horses. If we put things on the autopsy table we find there had hardly been any efforts to ensure sustainable growth. Many of the policies are lopsided and can barely bring any change in the lifestyle of Pakistanis. The worst enemy is the extensive load shedding and persistent power and gas tariff hike. Not only industrial productivity is on the decline, rising cost of doing business is undoing local manufacturers' competitiveness.
Though, one may approve the way many of the state owned entities were privatised, the process helped draw substantial foreign direct investment. Under the 'Privatisation for People' programme listing of state owned enterprises and offering shares of these entities to general public resulted in quantum jump of the listed capital and much required liquidity in the stock markets.
The present government and global economic crisis both came into power almost simultaneously. However, many of the global happenings scarcely have any relevance to Pakistan. Local financial institutions had almost negligible exposure in real estate but prolonged load shedding of energy turned many of the star performers delinquent. This remains the bane of business to date.
High interest rate regime to contain inflation has proved toxic for the economy, a notion that has now found its place in the little black book of 3rd world's proverbs. Owing to its blessings entrepreneurs deferred their investment plans and cost-driven-inflation drew poverty line above the heads of more and more people.
Lately, country's foreign exchange reserves registered a significant increase but due to their 'untouchable' nature can't be utilised. Buying dollars from inter-bank market for oil import is adding to dollar's weight against rupee, which is pumping the prices up and up. 'Increase' in exports can't also be allowed to enjoy the company of adjective "significant". Hefty remittances have helped narrow current account deficit but prospects of reliance on expats' hard-earned-foreign-cash in the long run seem remotest.
Last year government slashed PSDP expenditure and is also likely to repeat history this year. This trend is dangerous as deferring the expenditures dents not only the initiation of new projects but also undertaking of the existing ones.
That the lack of good governance has become the hallmark of this government is something that goes without saying. Be it the tariff of rental power plants or handling of sugar crisis, lack of transparency has attracted a lot of ire. Similarly, various subsidies are being withdrawn due to the IMF pressure, but least is being done to curb extravaganzas of the people in power. Time is slipping through this regime's fingers like sands in an hourglass.
Seize the day before it's too late to say "it's never too late".