According to newspaper reports, the government is trying its best to keep focus on the economic growth in the coming budget. Finance Minister Ishaq Dar has acknowledged that the country has achieved lower than targeted growth rate during the current fiscal year, but believed the economic indicators are showing signs of stability and recovery and the situation will be different in the next fiscal year. He says that the focus of next year’s budget would be on increasing economic growth and has promised to include valuable suggestions made by the Economic Advisory Council members in the budget making process.
The finance minister has the reasons to believe in the economic indicators and justify the government policies during the current fiscal year, but point to ponder is that why the other economies in the region are performing better than Pakistan despite the fact that these were more crisis-ridden than this country. Despite having half of Pakistan’s GDP and low industrial base, Bangladesh overtook Pakistan in textile exports and that is the question the country’s financial managers have to be answered.
According to the finance minister, the government has adopted a three-pronged strategy, which included protecting the country from international default, achieve macroeconomic stability, bring down inflation and cut down budget and current account deficits. However, the third stage of the government strategy is to move towards growth trajectory by increasing spending on growth-oriented priority areas by maximising allocations for the public sector development programme. The government has already accepted a bailout programme given by the International Monetary Fund.
It is a good omen that the government has launched various infrastructure projects to trigger economic growth and is pouring money in energy, highways, water, ports and communications sectors. There is no denying the fact that education and skill development are the integral part of economic growth and improving the quality of life in the country is another priority area. Therefore, the sectors directly linked with human life cannot be ignored such as health and environment.
The members of the Economic Advisory Council have advised the government to pay attention to regional development through increased connectivity and ensure inclusive growth and development in far flung areas. The government is spending billions of rupees on security related issued which is also necessary keeping in view terrorist activities in the country. However, the prime minister had pledged while assuming the office that the priority of his government will be business, business and business. There is a need to revisit this priority.
