Pakistan’s Economy:

PAKISTAN`S economy has been in crisis for a large part of its existence.
However, a stage has now been reached where personal, party and
institutional interests and differences ought to be restrained and all
stakeholders need to agree to some basic principles and policies. The
recognition has been there and there has been much talk of a charter of the
economy in political circles. Yet, there has been little discussion on what the
salient features of such an agreement would be. Here is an attempt to outline
the broad contours of a possible charter: 1. Pakistan is a democracy and the
well-being of all citizens is paramount; the rights and interests of all segments
of the population is to be ensured, including the majority segment ie, the
lower and middle-income citizens.

2. The elected representatives will collectively galvanise public support for the
steps to be taken under this charter so that the citizenry stands by the
government when self-serving special interest groups resist necessary
corrective actions.

3. Cronyism is a grave injustice and fosters an uncompetitive economy.

Uncompetitive `cronyism` (through subsidies, tax breaks, special access,
protection from competition, etc) will be replaced with a fair and competitive
market economy, but with the state taking responsibility for nurturing citizens
to reach their full potential and providing social protection for the deserving
needy.

4. Discriminatory regulations and subsidies which are estimated to cost more

than debt servicing or defence expenditures will be ended. If/ where
concessions or subsidies are deemed justified and necessary for some
component/sector, then the state must receive a fair share (as proportionate
shareholders) of the enterprise subsidised with the citizen`s hard-earned
incomes.

5. Technocrats and regulatory bodies will be selected on merit and no conflict

of interest will be countenanced. They will work within policy parameters
formulated by elected representatives and be held accountable for results.

6. Selection, advancements, postings and job tenure of government officials

will be strictly on defined criteria, without reference to the wishes of
influentials.

7. An effective mechanism will be established for the coordination of the

various components of the justice system, which currently come under
different administrative units (parliament, judiciary, ministries, police,
prosecution, etc). Criteriawill be agreed upon for the selection of judges.

The judicial administrative authority of judges (formation of benches, cause

list) willbe shared by senior judges.

8. Only the highest-priority development projects will be funded for the

immediate future.

Scarce international currency reserves will not be spent on the import of non-
essential goods. Severe penalties will be applied for defrauding the country,
such as through underand over-invoicing.

9. Every effort will be made to import in the national currency under guid pro
quo arrangements, or by trading/bartering against national production.

10. Unaffordable losses by SOEs will be controlled by professional

reorganisation or by transparent privatisation.

11. Utility pricing will be rationalised so as not to unfairly burden the poor.
Distribution losseswill be controlled, for instance by investing in upgrading
and reducing inefficiencies, instead of passing the burden onto consumers.

12. The current method of `incremental`budgeting generally practised by the

government will be modified and, instead, plans will drive budgeting, not the
other way around.

13. The taxation system will be fair and nondiscriminatory, and what is due
will be collected regardless of pushback by vested interests. The tax base will
be broadened to include all who ought to be eligible, including the agriculture
sector. Indirect taxes will only be charged where fully explained and justified.

14. The highest priority will be to bring agriculture and livestock productivity
and quality at par with international standards and by improving water
utilisation efficiency. The land revenue department will be streamlined to
remove any hindrance to economic activity.

15. Exports will be raised by producing more internationally competitive

products and services.

Reliance on state concessions and grants of`favoured` status by importer

countries will be weaned off. There should be equal opportunity for all
enterprises to develop a highly competitive economy through simplified
procedures, no discriminatory policies and regulations, quality skills training
and science education, quick dispute resolution and so forth. Overseas
workers will be professionally supported as a vital part of the national
economy.

16. The state will facilitate and regulate a fair market economy. The industry
will step up from assembly to manufacturing. Exporters will diversify their
export goods as well as destinations.

17. The services sector will be encouraged to give due importance to exports.
Regulatory bodies will be accountable for performing their assigned role
effectively. Insider trading, cartel behaviour and other illegal practices will not
be allowed.

18. Opportunities presented by CPEC will be fully availed. Besides

infrastructure, Pakistan will work with foreign firms to manufacture and
export products via CPEC and train workers by association with foreign
experts and technology and skills transfers.

19. National and provincial development strategies and plans will be made
domestically. Foreign supporters may offer to fund a part of these. In the
future, this ought to be the model for foreign assistance, if needed.

20. Balochistan and former Fata will receive special considerations and
investment for their development needs to give them equitable opportunities
as citizens of this country.

21. At present, highly educated workers have a much higher unemployment

rate than the national average. When properly informed about work
opportunities, after completing basic education, most students are expected to
opt for high-quality, market-driven vocational skills training. Higher
education institutions will cater to a more competitive student body and focus
on producing the country`s requirements in science/engineering, agriculture,
industry, IT and other fields.

22. A productive and efficient economy requires a healthy workforce. The state
will, therefore, make every effort to organise quality healthcare for all. • The
wnter is the author of Pakistan: Princi ples of Public Policy Redefined How to
fast track progress and win over citizens.

Obstacle in Pakistan Economy:

The biggest obstacle to Pakistan`s economic growth is our outdated and ineffective judicial system.
Pakistan needs sophisticated foreign investors who come here with capital, superior technology, and
management skills. Such investors don`t pay bribes, no matter how large or small the quantum, and
cannot wait forever for justice from the local courts. These investors expect a dependable legal system
that ensures to their investments a minimum level of protection unlike local investors, foreign investors
have 195 other countries to choose from! Pakistan desperately requires trained commercial lawyers and
judges, now. If we can allow the UK universities to offer English law LL.B.
degrees to Pakistan-based law students which are also recognised by our Bar Councils, what stops us
from establishing specialised commercial courts staffed by retired and serving competent judges from
other common law jurisdictions? There is a convention in the common law countries where judges can
rotate from one jurisdiction to another what stops us from adopting this convention only to save Pakistan
from economic collapse? As an experienced lawyer, I can assure the nation that the existing legal set-up
can only guarantee the economic collapse of the country and that too in perpetuity.