Ten Economic Solutions

Ten economic solutions, written by Dr. Ashfaque H Khan (director general and dean at NUST business school), highlights the ten economic blunders and provides a thorough solution for them, a brief of which is produced as under:

First, and the foremost, economy has to be given the top priority. State has to take strong steps to reform economic policies and to re-establish investor confidence while strengthening ties with the private sector. Second, improvement in the financial position is vital via fiscal adjustments and mobilization of resources for sustained economic growth and poverty reduction. As far as the revenues are concerned, implementation of reformed GST at its earliest will be the key to success of IMF program whereas discrepancies in the tax collection system also need attention. On the revenue side, we must cut down any unnecessary government expenditure. Third, the budget deficit needs to be reduced to 3 percent in the next 3 years. Fourth, as the new NFC awards is termed as a cause of continuous macroeconomic instability, as the government has overlooked its growing financial need in the wake of war on terror, its implementation should be postponed for the next 3 years till we achieve fiscal consolidation. Fifth, public sector enterprises which are draining the national resources for no good should be privatized at once. Sixth, the problem of circular debt cannot be resolved by increasing the power tariff. Corrective steps have to be taken to curb evasion of bills and free provision of electricity to WAPDA employees. Moreover restructuring of certain departments and induction of professionals in WAPDA is necessary. Seventh, besides the wheat lobby efforts, government should fix the support-wheat price at the current level for two years so as to save the poor and the fixed income group. Eight, learning from the past blunders, government should not incur heavy debts from IMF over and above 100 of the quota. Ninth, finance minister should stand in face of the problems and lead from the front taking along the private sector. Tenth, economic governance must not fall victim to political somersaults as it will only result in deterioration of the economic situation.

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