ISLAMABAD: The country must grow at a rate of 7-9pc per annum for a sustained period of three decades to absorb the youth bulge into gainful employment, and to sustain a high level of debt, the Planning Commission’s think tank, Pakistan Institute of Development Economics (PIDE) estimates suggested.
A detailed report of 97 pages titled “Reform Agenda for Accelerated and Sustained Growth” prepared by PIDE Reform Agenda Commission comprising renowned economists and technocrats presented the requisite but drastic key changes in the political structure, judicial reforms, tax reforms and others institutions and regulators for achieving a sustained and long-term growth trajectory for Pakistan.
The PIDE research report suggests that “7-9% growth rate is not the projected rate rather it is the rate required to stay out of the woods and two, moving to a high and sustainable growth trajectory calls for breaking away from the past which is possible only if we undertake deep seated structural reforms in almost all areas influencing growth. This document lays down the reform agenda, pursuing which would put the country on a high and sustained growth trajectory,” the report added. The PIDE estimates suggest that to secure a reduction in Debt to GDP ratio, from the present level of 86% of GDP, the economy should grow at a rate even greater than 8%.
Towards a Stable Democracy, the PIDE suggested adoption of proportional representation electoral system. For the political parties to be eligible to contest elections, the parties must have elections within the party. Certain, minimal percentage of the provincial population must be inducted as party members. The legislators should not have any say in the approval and execution of development projects. Only a small proportion, maybe 5%, of the legislators may hold executive positions, the rest should be legislators only. There should be a maximum term limit (maybe two terms) for the Prime Minister and all the legislators. It also called for direct election of the Mayor of the local government.
Investment and productivity that are the two major drivers of growth but are on a declining course, require a significant raise the investment rate and productivity. Realizing, the resource constraints that the country face this reform agenda emphasizes reforming institutions (laws, rules, procedures and, processes) to raise productivity and investment. Thus the focus is on altering the software of growth to improve the productivity of public as well as private investment.
Addressing the restrictive regulatory regime and procedural bottlenecks that the investors face will give a much-needed boost to our low investment rate. The process of public investment undertaken through the federal and provincial PSDPs is flawed. The agenda recommends using the Result Based Management Framework (RBM) to identify projects suitable for public investment, monitoring implementation, and assessment of outcomes.
For civil service reforms, the PIDE suggests that the stopping the generalist colonial exam (CSS) to recruit for a lifetime. University performance and achievement, intelligence, and psychological testing if desired are adequate. No lifetime and career guarantees to be given. No service hierarchies as in the current system, with guarantees to any group to be in controlling positions. Continuous recruitments at all levels without guarantees to certain groups be undertaken. Continuous training of public servants to be conducted at universities in specialized fields. No transfers across government to allow one group to control all activities especially given the costs incurred. All agencies and levels of government to be monitored by the HRM ministry that prepares annual reports comparing practices, salaries, and state of public service. All agencies, levels of government, and departments must prepare annual performance commitments for the coming 3 years and prepare reports on recent performance. Individual performance within the purview of departments and agencies subject to review by the ministry of HRM. Compensation be made generous on market terms (based on private-sector competitors) but purely in cash. The colonial system of perks, plots, privileges, ex-officio appointments, and arbitrary allowances to be discontinued. The resources released will have a huge growth impact. While past pensions are overburdening the government and have to be met, going forward pension will be fully funded and invested. Moreover, to allow and encourage mobility, pensions must be portable, and mobility between the private and public sectors will be encouraged.
For judicial reforms, the PIDE recommended that the outdated, complex, and ambiguous laws should be updated or amended, like the Arbitration Act 1940.
The appointment of judges should be based on quantifiable parameters, for example, such lawyers be selected who have won a higher proportion of cases. Also consider the academic record, especially, in Law College, while appointing a judge. To appoint judges to higher tiers, their performance as judge in lower courts be made the key criterion.
Customized training be imparted to judges at different levels by permanent and capable faculty. The allocation and Monitoring of Cases, adopt the case-flow management system used universally in courts. Use a docket system and case track system - a software to monitor the speed of cases. Assign deadlines for the conclusion of cases and impose penalties for failure. Their performance should be evaluated on quantifiable indicators. While hearing appeals, the superior courts should focus on points of law and refrain to reopen decisions of lower courts on facts.
The number of tiers should be decreased from the existing four to three, namely; trial, appeal, and constitutional. Litigants bringing unnecessary and frivolous cases should be made to pay the costs of courts’ time. The time limit on stay orders provided in the law should be strictly and fully enforced. Adjournments should only be allowed in exceptional cases and not more than once. It also calls for increasing the number of judges, if required.
