Handed a ‘solution box’: Lack of political will stymies country’s transformation

Global consultant McKinsey presents fixes to pressing problems.

ISLAMABAD:

McKinsey & Company – a global management consulting firm with 87 years of experience in public and private sectors – was asked by the Pakistan government to point out missing links in country’s transformation into a prosperous nation and it identified the ‘political will’ or lack of it.

The firm’s consultants at a workshop here on Thursday shared their views on Pakistan’s economic and social problems and global experience in dealing with such issues. They presented solutions to the challenges of power crisis, trade, tax reforms and transforming loss-making state-owned enterprises.

The recipes offered by McKinsey consultants were not new but they made a point of applying political will and a workable implementation strategy by quoting examples from countries like Malaysia, Singapore and the United Kingdom.



McKinsey has been engaged by the Planning Commission for its advice on developing Vision 2025 and an implementation strategy. The workshop was part of consultative meetings being held in connection with the development of the plan, its targets, implementation mechanism and strategy.

“The value of McKinsey’s reports is in its execution,” said Salman Ahmad, a partner at McKinsey. About four years ago, the firm had produced a report on Pakistan’s economic problems that the PC basically just shelved.

McKinsey underscored the need for setting up delivery units with clearly defined targets. To address energy problems, it suggested policy changes in addition to reducing line losses through a combination of measures.

To overcome the losses caused by state-owned enterprises, McKinsey suggested separating the role of regulation and policymaking from operational matters.

“There is no dearth of studies but implementation remains a serious challenge,” said Ahsan Iqbal, Minister of Planning, Development and Reforms.

He was of the view that the country suffered the most because of discontinuation of policies and the cost of discontinuation was greater than the cost of corruption. The country should overcome the knowing-doing gap and focus on implementation, he stressed.

Among non-economic factors, according to Iqbal, though political stability had been achieved, peace and harmony still posed a challenge. “We have a severe energy crisis because of lack of planning. If we do not plan today, the worst water crisis will hit us in the next five years,” he cautioned.

The government wants to develop Vision 2025 with the collective wisdom of people and broad-based ownership. It is striving to prepare a growth model which should be inclusive and able to fight poverty and inequality.

The government is also working on mobilising indigenous resources, widening tax base, increasing investment and doubling exports.

“Pakistan’s location provides us great opportunity for harnessing the potential of regional trade.” For this purpose, the government was planning to upgrade infrastructure, Iqbal said.

He expressed the hope that through collective enterprise Pakistan would soon bounce back to become one of the fastest growing economies in Asia. The greatest potential lies in human resource, particularly youth. Vision 2025 aims to develop education and skills as well as create jobs.

Published in The Express Tribune, September 6^th,  2013.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.