An uphill task

The federal government’s desire to chart out a new roadmap of economic priorities can turn out to be a time-consuming factor. While the ministries have been asked to come up with swift policy prescriptions, which could lead to transformation of the economic sector, it would be more advisable to opt for a quick-fix surgical option and curtail inflation by addressing the swelling balloon of poverty amidst increasing uncertainty in the country. The long-term priorities can go side by side, and come to buckle up the plummeted sectors of the economy, especially SMEs, an agriculture now dependent on food imports as well as the vulnerability of the industrial units. In order to do that, political instability is sine qua non, and cannot be brushed under the carpet for reasons of expediency.

A high-powered meeting deliberated upon the indispensability of reforming the tax base, and creating more job opportunities. This is essential and should not hit the same snags. Political exigency factors had prevented taxing the affluent sections of the society, especially agriculture and real estate. This is why it remains to be seen how effective the muscles of the new finance minister from the corporate sector will be in overcoming such impediments. Likewise, the beleaguered coalition is also faced with the uphill task of negotiating a new deal with the IMF, and the donors’ desire to revisit the NFC Award is a case in point. With the mess of politics that we are in, it is quite unlikely that a new formula can be devised among the federation and provinces. Last but not least, attracting foreign investments in such a confrontational scenario will demand some out of the box ingredients to soar up confidence in the economy.

With the second review of the Stand-by Agreement underway with the IMF, the government will have to reprioritise its wish-list. The country cannot survive on aid receipts to overcome liabilities. It has to come full blown as far as indigenous growth is concerned, and fix the leaking taps by ushering in a new policy format. Sectors such as blue-marine economy, minerals, livestock, SMEs and IT-starters need to be put in the vanguard.

Published in The Express Tribune, March 16^th, 2024.

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