Common economic agenda need of the hour: experts

LAHORE: Experts have warned that the economic situation in Pakistan would go out of hand if politicians fail to agree on a common economic agenda.
Economists have almost the same stance on most economic issues faced by the country.
There are structural problems in Pakistan's economy as saving and investment rates are very low. With the saving rates of 14 percent of GDP and investment rate of 13 percent of GDP Pakistan is two to four times behind regional economies, the experts said.
Pakistanis, they said, should go for saving instead of living beyond their means. Savings would come from affluent middle class and not from the poor that barely survive on their incomes.
Asif Ali Shahid, an economist, said that another area where clear thinking is required is privatisation.
Politicians complain about heavy loses of state-owned enterprises and are very sensitive on privatisation.
“Pakistan cannot afford to let these SOEs bleed the economy of over Rs500 billion per annum, two percent of GDP,” he said.
"By stopping this bleeding, we can add two percent in our growth that will create numerous jobs, while we are shedding manufacturing jobs currently," he said, adding that rethinking of the economic policy approach is required for sustainable growth to lift millions out of poverty; to succeed planner will have to deepen regional and domestic demand, strengthen its macroeconomic institutions and plead for open global system.
Shahid said that the economic prudence demands that every corner of the country is linked with the domestic and international markets through roads, railways, ports and airports.
Inputs such as water, power and energy must be made available at competitive prices, he said, adding that the countrywide linkages through mobile devices and broadband are essential elements to foster sustained growth.
He said all political forces would have to come on the same page to achieve this aim.
The government must respect and nurture the private sector. Making money should not be look down at. Irregularities occur due to weak regulatory institutions, which should be strengthened, he said.
Economist Faisal Qamar said governance issues have not been resolved in Pakistan despite admittance at the highest level that most of the ills in the economy are due to bad governance.
Politicians and bureaucrats are not prepared to do away with their discretionary powers that kill merit, he said, adding that when the governance bar is lowered it makes the bureaucracy unaccountable and strong.
“In order to bend rules in their favour the rulers become dependent on bureaucracy,” Qamar said.
He regretted that a detailed report prepared by Dr Ishrat Husain on governance reforms is rusting and no efforts have been made to implement its recommendations that Dr Hussain says could still be implemented with minor adjustments.
The existing procedure for appointments in regulatory bodies where the tenure is constitutionally protected is flawed, Qamar said, adding that the sitting government sometimes delays the appointments for a very long period.
He said as a first step all SoEs should be removed from the control of bureaucracy and transferred to a holding company. It would then be prudent to first restructure these SoEs by appointing new heads through a transparent way.
The appointing body should comprise professionals undisputable integrity, he said. People like Dr Ishrat Husain, Saleem Lakha, Razzak Dawood and Dr Ejaz Nabi should interview the candidates and send the name of three candidates to the prime minister for appointment, he suggested.
He also proposed that there should be no interference from politicians and bureaucracy in this appointment process.
The bureaucracy should be stopped from giving opinion on appointments or interfering in the process.
Economist Naveed Anwar Khan said low literacy rates and poor health indicators are taxing the growth heavily. A low educated workforce with suspect health cannot be expected to perform with the same efficiency that is the hallmark of a skilled, literate and healthy workforce, he said.
The prime minister should sit with leading industrialists once in a month along with the policymakers. This meeting should take place at all costs and progress on deliberations made in earlier meeting should be recorded, he suggested.
Those that failed to comply with the instructions of the prime minister in the previous month should be taken to task, he added.