LAHORE – The Planning Commission (PC) of Pakistan is forming a much-needed economic growth strategy by focusing on economic discipline and productivity. The strategy, being evolved, would be an agenda of change and would not be a mere policy.This was stated by the Planning Commission of Pakistan Deputy Chairman Dr Nadeemul Haq, while speaking at a dialogue on economic growth challenges for Pakistan, arranged by the Lahore Chamber of Commerce and Industry (LCCI) on Saturday.
LCCI Senior Vice President Sheikh Mohammad Arshad, leading economists Saqib Sherani, Dr Qais Aslam, former LCCI Presidents Tariq Hameed, Bashir A Buksh, Sheikh Mohammad Asif, Shahid Hassan Sheikh, PIAF Chairman Sohail Lashari, former SVP Yaqoob Tahir Izhar and Almas Haider also spoke on the occasion.The deputy chairman of the Planning Commission felt that unnecessary regulations, distorting taxes and subsidies have destroyed the domestic commerce. He, therefore, stressed on evolving a strategy which would reduce government’s influence on the economy.
He stated that responsible fiscal and monetary policies were necessary to create economic discipline. In addition, restructuring of all 22 public sector enterprises, which are eating up Rs 300 billion annually, need to rationalise public sector development programme -above all a cut in heavy bank borrowing by the government. In order to boost productivity that is a prerequisite to economic growth, Dr Nadeemul Haq said that market reforms are the key as lack of incentives for innovation and entrepreneurship has pushed us to the wall.
The LCCI Senior Vice President Sheikh Mohammad Arshad called 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 would 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 – a 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 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 should be a must as the Indian Prime Minister is not only accountable to the Parliament but to its committees and the court of law.
Saqib Sherani said that people with 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 would have to 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 an economic slowdown phenomenon.
