Mixed indicators
General Bajwa’s remarks about the state of the economy on Wednesday last had drawn off the cuff response from Interior Minister Ahsan Iqbal which led to a rejoinder from the ISPR chief. Few disagreed with the facts that the country needs to expand its tax base, enforce financial discipline and ensure continuity of economic policies. There was already a consensus among independent economists that the tax to GDP ratio is abysmally low and this needs to change, the economy documented and export base diversified if Pakistan was to break the begging bowl. That civil and military arms of the state should talk to one another via the media was however widely considered inappropriate. It was suggested that both sides should resolve their differences at proper forums in accordance with the rules of business.
On Tuesday Finance Minister Ishaq Dar painted a rose coloured picture of the economy while addressing the media. Ignoring the points raised by Gen Bajwa in his address to a seminar in Karachi, Dar only highlighted the points that supported his over optimistic view. The government no doubt deserves credit for bringing down loadshedding. Its promise to reduce the power charges however remains a dream. Unless this is done the cost of doing business in Pakistan, which is a disincentive for potential investors, will not come down. One would also agree that the security situation has improved. Much more needs to be done however to stop the type of horrendous terrorist attacks that have taken place this year. The credit for reduction in terrorist activities goes mostly to the army. The government on its part failed to fully implement the National Action Plan (NAP). It still has to devise a policy to eradicate extremism in the country. The recent outburst against the Ahmadi community from Captain Safdar shows that even those very close to the Sharif family are yet to be disabused of extremist tendencies.
With this track record few would buy Dar’s claim that the government is successfully trying to meet both security and development challenges facing the country.