Challenges facing the economy

The latest Economic Survey released by the government gives in details stresses and strains which the economy head to bear in the outgoing financial years. As most of the economic targets remained underachieved, the Survey pointed out to the overall prevailing environment for this situation.

While presenting the Survey at a news conference, Dr Abdul Hafeez Sheikh, Adviser to PM on Finance, said that efforts were concentrated to stabilise the economy and this process will continue in days ahead. He also spelt out economic priorities. These are investment promotion, austerity, acceleration of exports and control over luxury imports and protecting the under-privileged sections of the society.

Perhaps the most formidable problem being faced by the economy is the huge burden of debt, domestic and foreign. After paying their share to provinces and debt serving, there is not much resource left with federal government. It is quite obvious that efforts are needed to augment revenue.

It has been argued for long that undocumented sectors be documented in the past but without much success. It is a potential source of revenue generation and the adviser has indicated to tap this source. Besides, the austerity measures will also help in augmenting the government’s resource position.

The big losses of public sector enterprises are also a heavy burden on the exchequer. A well-defined policy about elimination of their losses or alternatively privatisation of these units seems necessary. At the same time the completion of projects within schedule and strict over their costs will also help.

Here it may not be out of place to mention that economic targets that are fixed for next year should not be ambitious but attainable in the present state of economy. The years ahead appear challenging and the government and private sector be ready to face them with confidence.

The outgoing financial year has seen steep rise in prices burdening the common man. For majority of the people it is the price stability, which remains that most important factor. Hence, there are expectations that special efforts will be made to keep the prices stable. Let us hope that after the economic stabilisation programme is over within the next few months, the economy will be put on the path of growth and progress.