Economic Policy: PTI lists down health, education and governance reforms
PTI’s Senior Vice-President Asad Umar, before presenting the policy, gave an insight into the current situation of Pakistan.
While comparing the growth of Pakistan to that of other countries, Umar said, “Pakistan’s solution is not administrative, it is political.”
He added that the cost of economic failure in Pakistan is of human life. “A child born in Pakistan has a lower chance of survival than in most countries of the world.”
Institutional reform
While presenting the policy, Umar maintained that all state-owned institutions are at a disaster and the loss is so huge that it cannot be estimated.
To reform the institutions, Umar said that the Railway Ministry will be abolished and it will work under an autonomous board instead of the government. He added that the Pakistan International Airlines (PIA) will also be taken out of the control of the Ministry of Defence if PTI chief Imran Khan comes into power after the next elections.
Governance reform
Stressing the need for a local government system in Pakistan, Umar said that the current governance in the country is very centralised and weak. “Imran Khan, as the prime minister, will devolve all power from his hands down to the grass-root, village level to decentralise power.”
He added that there should be district finance commissions so that every district in Pakistan gets its due share of expenditure.
A few other points for governance reforms included:
- Implementation of Civil Service Reforms
- Direct funding for every district to ensure equal distribution of funds to districts and villages
Expenditure reform
Umar said that the party will aim to reduce the number of federal ministries to 17 from the current 37 to cut down the expenditure of the government.
Other points included:
- Limit perks enjoyed by ministers, MNAs, MPAs and civil and military bureaucrats
- All state institutions, including defence to participate in expenditure reduction campaign
- Eliminate all discretionary funds
- No development funds for parliamentarians
“On the right hand, Imran Khan will be taking his oath as the prime minister, while on the left hand, such (lavish) buildings will be bulldozed,” said Umar.
Revenue collection
Presenting the party’s policies for the collection of revenue in Pakistan, Umar said that the tax rates, especially the GST, is very high and it should be reduced.
He added that some time will have to be given to the tax evaders to come clean.
A few other points included:
- Making FBR fully autonomous
- Government to make tax policy, FBR to implement independently
- Raise revenue by ensuring tax collection without raising tax rates
Health reform
The party vice-president stated that during the party’s tenure, health spending will be increased from 0.86% of the GDP to 2.6% in a span five years, and primary health care to the poor people of Pakistan will also be ensured.
All DHQ/THQ hospitals will be modernised and jobs will be created in the health sector, Umar detailed.
Education emergency
Maintaining that the country cannot progress in any sector nor can justice be attained unless education is reformed in the country, Umar said, “We want one education system for one nation.”
The PTI will also focus on girls education by doubling the number of girls high schools in five years, as there is “no better investment in Pakistan than to invest in girls education,” he said.
“It is not possible that Imran Khan becomes the prime minister and nothing is done about sports… These days, there is no productive activity available for children,” said Umar adding that the PTI will focus on sports and extra-curricular activities in educational institutes.
“Education does not only teach functional skills, but also builds up character… We want to provide the opportunity to every child to become a future leader.”
The education reforms also included:
- Increase in spending from 2% of GDP to 5% in five years
- Voucher system to fund students to go to private schools to fill gaps where government schools are not enough
A few other points from the presentation are listed below:
Skill development
- Leverage private/public/NGOs for mega skill development program
Foreign exchange
- Export strategy to boost FX earnings
- Fix flawed energy policy to reduce large trade deficits
External vulnerabilities
- Give confidence to overseas Pakistanis to invest at home
Growth strategy
- Investment spending to rise to 21.4% of GDP by FY18 (12.4% in FY12)
- Fully exploit the ignored indigenous natural resources of Pakistan
- Boost agriculture output and farm incomes
- Rapid industrial growth for generating jobs, boosting exports
- Regional trade to diversify markets
- Jumpstart economic growth to absorb two million youth to labour force every year
Agriculture
- Reducing cost of production
- Using farmers to fight inflation
- Community Dairy Farming in every village of Pakistan
Energy secure state
- Resolve Circular Debt through moving to lower cost production
- Divert all resources to maximizing energy production
- Bring loadshedding to manageable proportions urgently
Accountability emergency
- NAB to have its own investigative and prosecution arm outside the purview of the executive
- Special Task Force to recover looted national wealth stashed outside the country
- All recovered assets of corruption to be used for educating the youth of Pakistan
COMMENTS (173)
Nice economic plan, but from where u find the people to implement this plan, as u are saying that u are going to decenteralise , it mean again corruption at low level and hence no change..... May Allah Pak help us......
Well, job done by Asad Umar on economic reforms but he should also mention here the infra-structure/ mechanism for the collection of Zakaat, Fitra & other donations/ sadaqaat and their utility for the poor people of Pakistan.
An Excellent Preliminary Lay-OUt of what needs to be done and how to get it Done. A structral and political reformer required in pakistan to take the country at its boost and I think Imran and his team have lots of potential to do this. The Economic Policy is actually showing PTI's caliber and interest to resolve the problems of paksitan. if they implement even 40% of whatever they ahve described in thier Economic Vision pakistan will be at peak in Asia, I believe. Very Good Imran Khan & Team.... we hope you will change the destiny of this country .
Well done Imran the most important thing is to put a break on the massive disaster towards which we as a nation are heading. I personally feel that in your first year of governance if you are able to at least stop the negative growth, think you self a winner.We as a nation have to get rid of all professional politicians who are looting us with we never realizing it. Best of luck and i wish you God speed
well done janab asad saib well done
The biggest time bomb tickling on Pakistan's horizon is the massive population growth rate . When the country broke in 1971 , we were 50 million and Bengalis were 70 million . Today , after 41 years , they are 130 million and we are 190 million . Is any one realisng where we are heading to ?Every problem of the country lies here . Asad , you have talked about privatising Railways and PIA but have you realised that the magnitude of unemployment it will create ? Is there any realization on your part about the ever growing urbanisation , and the problems associated with us ? Sorry , I am hugely dissappointed .
For those who are challenging this great effort, calling it a rhetoric and asking for detailed procedure and action plan:
Shutting PM, Govervor houses and slashing presidency budget by 50% is just a glimpse of things to come This policy and such documents capture theme and vision and NOT a detailed implementation plan or procedure.
Hats off to the team - brave vision - if only we as nation could wake up to the call
@Meekal A Ahmed: I think they made a big mistake in not making you their planner.
On right track. That is what is required. Best wishes for success in implementing it. I vote for you.
Great !! now it seems we have educated people in politics and we are geting mature in politics now we have to use the power ov vote many literate paki dont go for votes soo plz we shud need to goo !.. and vote tO PTI ..
@ Nadir...it will be achieved by coming into the Power....and how ? through you Me and all the People of Pakistan
Well Done Asad Umar.. A revolutionary step by PTI. PML-N trolls should use burnoll now.
Looks great on paper. Grounds realities are not so simple. I personally think if any one works for betterment of country must b supported instead of just opposition. If PTI is missing anything in its policy, professionals from other parties should help them in preparing a common policy on some serious issues what Pakistan is facing today. And after elections anyone come into power must stick with that policy framework. PTI should also come up with realistic approach. Pakistan have very complicated issues its not the game of days or 100 days as IK said. We have to finalize a national level policy on terrorism and religious extremism those who think this is only because of U.S will change their minds soon. Its the process of many years even when we will be on right track.....
some people on here are just doing CATHARSIS.
Dashing Asad Umar is Better Looking than Lazy Abdul Hafeez Sheikh
PTI for the WIN!
Geo Asad Umer...you relle ROCK!
Inshallah IK will Implement this....We are with you Khan sab...
Similar syllabus in all educational institutions, not giving MPs development funds and monetising perks and privileges of officials are the solid points which would bring difference. Rest is all nice talk. Let's hope for the better.
Health spending is 0.5% GDP, no road map is there other political parties have almost same, but still nothing practical.Most crupt Nazim System we experienced in Last regimen. I don't feel impressive if you watch speeches of Frooq Laghri (late) and Mr Mush they were presenting even better but nothing they can offer practical, even after most power full person in country. These don't know what is our real potential there in rocket science Look at Jodan the country with out having any resource.
PTI does have some very competent people in its ranks who understand economics, have great business credentials and are otherwise non-political - Imran Khan needs to give these people a free hand and bring them to the forefront of the party instead of political heavyweights like Javed Hashmi and SMQ.
So far the policies sound promising, but I hope that IK isn't micromanaging every aspect of the party - like the point about "giving time to tax evaders to come clean", those who have been evading taxes so far probably won't have a sudden change of heart just because IK is their PM, it's naive thinking. But still, even if PTI is able to deliver on a fraction of these policies, I think they deserve to be in government. Also, can anyone tell me where can I read a detailed PDF of PTI's administrative policies?
Atleast debate has been triggered. There is always room to improve nothing to worry about. we should be optimistic. Even otherwise who else is there to do anything to make Pakistan economically viable? PPP, PML(N) or military dictatorship who is primarily responsible for all this fiasco.
@Mirza: Please read in full policy before you comment here read in full PTI Ecomonical POLICY ON their own site or facebook page. They will cut from defence and Government unproductive expenditures. Also cut down the Ministries from 37 to 17. It will be obvious result in less governmental expenditures. Also by controlling corruption and refoming in Tax policy they can collect at least 2000 Billion Rs. more per year.
@Nadir: I agree with you. This is no plan just a bunch of statements. It's time to see an implementation strategy. Also would've liked to see something to improve the legal system i.e. improvement in the number/quality of legislators
I don't understand why people here have already started criticizing for not being able to implement these policies. for God sake people, they are not even in the government. they are presenting their party manifesto like in every democratic country in the world (maybe except pakistan). these plans are for ONCE THEY GET INTO GOVERNMENT. some people dont seem to understand this simple concept.
Million Times better than vision of PML N and PPP. Way to go Policy wing PTI..! Superb work.
God save Pakistan from "Punjabi Taliban Ittehad"
All genius out here who are just Haters of PTI and is saying this that how will they do it??For them they should first read the detailed papers and then do their bla bla bla...This is the maximum details one can give on policy papers rest is minute details which are done while carrying out the projects..E.g when he said PTI will expolore the indigenous resources then how can he tell u rght now that we will get this and that from that expoloration. Hatres should give suggestions rather than stupid things that how when,where etc
well done pti you shut mouth of every other partys we love you all pti pease keep promise and delivers we love pakistan we love imran khan
Oh "Punjabi Taliban Ittehad" (PTI) is making the people of Pakistan fool with these secular agendas to grab power and turn the state into an autocratic state where Imran rules supreme.
after reading the comments few observations:- 1. any policy good/bad implementable or other wise is better than NO POLICY 2. most criticism (not all) mentioned in comments section can be termed as passionate denials rather than logical arguments (my assessment u may differ) 3. debate on economic policy details isn't it some thing new in pakistan, it is a healthy sign 4. even if we think details are missing shouldnt we help plug in the gap by providing "details". well i cant provide details my self as am no economist i expect "experts to pitch in with alternatives and details. All i can say is that i have been a student of macroeconomics and i think on surface it looks a policy statement in right direction and plausible, though difficult as acknowledged by asad umer.
An idea has the power to change the world. These are ideas, let them build, improve, and implement. PTI has my full support! Imran Khan has my full devotion!
Imran Khan and Asad Umar have a track record of implementing their visions as well as their dreams.Just compare their achievements with their competitors and you will know.Insha Allah Pakistan will flourish under PTI.
Overall good policy, but agriculture tax should be implemented, how to tackle with TAX thieves, how to reduce tax leaks., and finally execution and funding ..... ?????
by the way what would be the target growth rate for next 5 years. remember (Mr. Khan has anti american stance that surely will lead fewer foreign AID).
how would PTI team ensure the Max usage out of available resources ????
No clear instructions for economic uplift of rfural, remote areas.(even cities at distance from Lahore and karachi has very low quality of life.)
any policy for skill uplift for not technical personals ?
While it is a good initiative to put out an economic policy program, there is little concrete in here apart from flowery platitudes. Someone with Asad Umer's aptitude should have gone into more detail on crucial matters of how all of this increased spending required will be funded particularly in the face of the dire economic outlook.
However am hoping that things will become more crystallized as the party gets ready for the upcoming election. Also hoping that they spell out a more concrete program on Foreign policy and legislative reform as well in the near future....
Well laid out policy, let us see if these can be supported by strategy and tactics to actullay implement this. It is not easy to put these into operation. Nawaz can also come up with a similar plan, what needs to be seen is what and how they plan to implement. Also need to see some prioritization of the key activities.
Details here: http://www.scribd.com/fullscreen/103790292?access_key=key-21u25v6zrlxy8f1bq8p9
Congratulation! finally PTI evolved a blue print of their strategic plan. I strongly support their plan. However, I have some submissions for consideration:
It is not an easy task to handle powerful unions and invisible hands in PIA, Railway and Pakistan Steel. Without developing adequate understanding about the power dynamics, PTI's plans may end in fiasco.
Increasing investment without giving boost to saving is not going to be realized.
Governance is very difficult and dangerous area. PTI envisages to implement Civil Services Reforms. It is unfortunate that such reforms (proposed by earlier commissions) are very likely to empower bureaucracy - reinforce steel frame...Perhaps, PTI experts need to gain deeper insights into working of bureaucratic system. If they are really serious about it, they will have to break and mold steelframe... create a balance between generalists and specialists...and much more...
Agriculture: Almost neglected area. In past, powerful mafia have managed to hijack all interventions for their own interests under the cover of agri. Umar might be knowing very well about one segment of such mafia.
Real estate can't be overlooked if investment is to be driven to the productive sector.
Most critical area for intervention is the revival of dignity and self-esteem of common man. Common man is humiliated every day in one way or the other way. Without protecting their dignity, any progress would be totally meaningless.
I suggest PTI to set-up a research cell in the Secretariat of the Party having teams of experts on all vital areas of socio-economic development.
.... many more areas are there which need attention....
Best wishes to PTI
Dr. Atiq
Reading all anti-PTI comments remind me famous Omar Sharif dialogue "jali jali, tapi tapi" All I can say is "jal gaya? burnol lagaiye" :)
Education budget from 2% to 5% in five years? Not impressed. I really wish PTI try giving education a larger budget.
Well, on paper it looks so rosy. But then again, anything would be better than this 'democracy'.
C'mon people, where will the money come from? Maybe from the fact that there be considerably less corruption within the nation hence more money available for public. Also note for a lot of them, it is a change in % of GDP hence he is restructuring govt. expenditure from being based more on govt. lavish to education and health.
as my comments are not getting posted, I will not post any comments. The policies given by PTI is too broad.. implementation kesay ho gee?
At least I see some policy... good work...seems like there is some light at the end of the tunnel
IK NEXT PM!!
What would be avenue of revenue...at one point we are saying that we are going to reduce the taxes and on the same side you are increasing education and health and bla bla bla....These aforesaid statements are PTI recommendations for growth,,,,where are the policies....Atleast they should have read ongoing Framework for Economic Growth of Pakistan...Planning Commission document....This document is quiet close to reality in terms of problem identification to our economy and its solution,,,,,
WELCOME CHANGE!
What would be avenue of revenue...at one point we are saying that we are going to reduce the taxes and on the same side you are increasing education and health and bla bla bla....These aforesaid statements are PTI recommendations for growth,,,,where the policies....
To all those who are asking , where, when , how questions, the easiest things in the whole world is to criticize , and the more you criticize, the more it shows your own impotence , cheers
Asad Umar for the Finance Minister of Pakistan
@Falcon: "Great work by PTI. Whether you agree with it or not, at least have the courtesy to acknowledge the positive step. Most of these targets seem realistic, specially the ones on education."
I certainly acknowledge the effort. I did see some gaps/discrepancies which should be considered to make the plan more robust:
!) Increasing education to 5% of GDP (from current 2%) and increasing health spending to 2.6% from the current0.8%. This means that spending on health and education will go up to 7.6% of GDP in a country where taxes are less than 9% of GDP and debts servicing is about 4.5% of GDP. Even if Imran succeeds in improving tz to GDP ratio to 13% which would be a 50% growth, there is no way these ambitious health and education spending targets can be achieved wthout a significant reduction in security spending. Can Pakistan afford that when for all practical purposes there is a civil war brewing? Also if PTI intends to increase investment from 12.6% to 21%, it will need to significantly improve security to motivate people to invest.
2) Imran wants to increase devolution to the lowest level and reduced centralized decision making (which is desirable). However in decentralized systems of governance, deicionmaking slows down since more stakeholders are needed to be consulted to evolve a consensus. SO his ambitious and aggressive change plans are inconsistent with plans to aggressively decentralize. Also on the one hand he wants to give funds to each village but on other hand take away funds given to MNAs? What is the rationale there?
3) Focus on girls education is right but being soft on Taliban who have blown up over 500 girls schools gives a mixed message.
4) The doctors in Lahore and Balochistan have repeatedly gone on strikes in recent times. Ancors have agreed that some of their grievances are legitimate. So if the health budget increases, a large chunk of it will simply go to increased salaries for doctors rather than improving health infrastructure. Also, when India was improving its health budget, ut ran into the fact that a) there simply were not enough doctors and nurses being produced by the system b) those that stayed in the country were unwilling to go to the villages where the greatest need was c) being soft on Taliban who prevent vaccination again seems like an inconsistency.
Anyway presenting plans is a good thing because only then do people have a chance o provide feedback.
Good for a start. BUT Would be good if a detailed strategy or implementation plan is also coupled with this. Otherwise, this is just a wishlist which is on the minds of every educated Pakistani who understands the system!!!
Its about time PTI should put their words to action or at least lay out how they aim to achieve these target!!!
Most political parties announce their policies this way. Its too early in the political process to come up with a detailed plan. How many other political parties including PPP and PML (N) have announced their economic plan? I dont think they even have one.
I am sure PML (N) has one. It is called Ittefaq Group and PPP is called Swiss Bank Accounts.
“On the right hand, Imran Khan will be taking his oath as the prime minister, while on the left hand, such (lavish) buildings will be bulldozed,” said Umar."
Misquote.
What he said was "...boundary walls will be demolished, and buildings converted into educational institutes..."
"devolve all power from his hands down to the grass-root, village level to decentralise power" How to make village people understand this, who have lived and are living under the shadow of their Landlords for the last 65 years! One education system for one nation: You will need quite a group of dedicated academicians in your group from all ethnic regions. Need massive translations! How will you shun the private lobby of business oriented so called educationists! How to handle the 800000 madrassah students! Need some very concrete solution!
INDIA here...I am depressed to see this :D
Jokes apart, if this seems superficial..alternatives should be provided. At least someone in politics cares to present the future layout of their development schemes...
Tax evasion shall not be tolerated. I am currently living in the United States and if you evade even the minutest of tax *THEY PUT YOU DOWN RIGHT AWAY,TAKE WHAT YOU OWE AND IMPRISON YOU THE VERY MOMENT WITH HUGE FINES.
In Pakistan, we don't get the punishment for murdering someone as severe as people here get for downloading torrents or copying and selling pirated audio CD.
As an economist, I am impressed at the detailed planning already put in place by PTI. They will need it because the status quo (ppp/pmln/allies) will leave only a big mess
Give PTI a chance!! Have tried other two parties and we know what they delivered and not delivered. Give a chance to PTI. InshAllah, they will deliver.
Pakistan Army control eighty percent of Pakistan economy, other fifteenth present is control by foreign investment how PTI is going to handle them.
not an imran supporter on many issues, but i support any effor to reform the socio-economic condition of pakistan and do support these measures. the country will fall behind too far if things are not changed soon. the socio economic progress of pakistan trumps all other political issues.
For all the people who are worried about the how part, and are criticizing the lack of depth, HOW are u supposed to write details in a small presentation? U loosers need to understand that this is just a basic paper, the actuall detailed policy and the exact steps are too detailed to explain in a simple presentation. Get a life loosers.
@Ch. Allah Daad: Not Imran's friends, but your mindset.
@Nadir: At least someone is thinking about the future. You expect them to hand you over an extensive policy of few hundred pages in one hour. This objecting and not praising policy has brought us to this nadir, Mr. Nadir.
@Acorn Guts: Same here!! IK should tell his stance on religious,Minorities and pro Taliban. Being a Christian I want to know his stance. If he can't do anything to protect rights of minorities then he is just like all other so called awami leaders.
Get all policies in detailed documented form and publish it in a booklet as people want to know these policies in detail. Common man of small cities does not have any idea about it. These booklets will do a great for u. Around 25,000 copies per district would be enough.
To all those who are questioning the Policy and Its WHEN and HOW Things. Policy is made up of two parts. 1.Vision 2. Frame Work. In this article you can see the VISION part. Framework is made accordingly to achieve goals mentioned in the vision part when the time comes. It can not be documented most of the times. But you judge it when its in operation.
@Farhan: Energy Policy has already be declared... And also the Local Govt. Policy...
Well, i expected them to define goals and then explain the strategy to achieve them. If they want to enhance spending in one sector then were they will apply cuts. While making policy they have to keep in front the allocations of present budget/spending. Asad umar needs to understand that vague statements will take us no where.
The policy does not include Compulsory Primary Education for ALL children; revamping the 1861 police structure; getting rid of divisions, districts and Tehesils and replace them with Municipal govts thus having only THREE levels of govts: Fed, Prov and municipal as in all Western countries; making more provinces as in Turkey where every 1.2 million people have their own province and 80,000 people have municipal govt. PTI will be like any other status quo govt- if they form it- and they will just do some little tinkering. Unfortunate Pakistan!!