PM’s address: A ray of hope

Economic experts know that Sharif and team cannot do anything significant for the economy without tackling terrorism.

The first address to the nation by Prime Minister Nawaz Sharif, was significantly important for Pakistan’s economy. Although the prime minister started his speech with issues of terrorism and security, there was enough hope for those who matter most for the country’s economy. For the business community of Pakistan, Sharif said all the right things. Economic experts know very well that Sharif and his team cannot do anything significant for the economy without tackling the issue of terrorism. What matters most for the business community is how Sharif handles major economic issues like resolving the energy crisis, bringing in foreign direct investment and how he ensures the completion of major infrastructure projects on time.

Even during his election campaign, Sharif repeatedly promised to pursue major economic projects, like linking the Gwadar Port to China, by both railway and road, along with public transport facilities for Karachi and other big cities. Moreover, his earnest desire to develop better trade relations with neighbouring India is not hidden from anyone.

Commenting on Sharif’s speech, the former vice president of the Federation of Pakistan Chamber of Commerce and Industry told me that linking Gwadar to China — and other parts of Pakistan — will have a huge positive impact on the lives of the people of Balochistan.

Recently, a cement company gave its annual financial results notice to the Karachi Stock Exchange, mentioning that it foresees a better financial year ahead because the government is expected to spend more on infrastructure projects. More government spending on public sector development programmes means more cement consumption and greater profitability for cement companies.

This is just an example. Overseas Investors Chamber of Commerce and Industry  — a representative organisation of over 180 multinationals operating in Pakistan — recently released survey results in which most members expressed hope that the government will not only minimise power shortages but also increase the tax-to-GDP ratio — currently one of the lowest in the world.

Business people have pinned high hopes on the government. Now it is up to the government how it manages the challenges it faces. In case, it succeeds in completing even half of the major development projects during its tenure, it would certainly change much on the economic outlook for Pakistan.

Published in The Express Tribune, August 22^nd, 2013.