According to a report issued by the Institute for Policy Reforms,the government policies are un supportive of the much need reforms, suggesting urgent measures not only to spur industrial growth but also enable the country to achieve macro-economic stability.No doubt stimulation of economic activities are key to create jobs and improve living standard of the poor segment of society. The country’s exports have been dwindling for the last four years and trade deficits are on the rise. In this age of information and technology, the policymakers are unable to even emulate any economic model and have failed to adjust the economy to a standard level. Despite signing free trade agreements with various countries, the government has made no effort to lower the economic gap even with its regional peers. It is on the record that a South Korean team visited Pakistan in 60s to study five year development plan of Pakistan. They followed the plan and the current per capita income of that country is more than 22 times higher than Pakistan. The government is also facing circular debt crisis, trade deficits.The government is trying to recover the losses by taking more and more loans.
The policymakers will have to break the routine because business as usual is no more a viable option. As the population of the country is growing at a fast rate, visionary policies are required beyond political expediencies. Apparently, population boom is haunting the economy, but human resources are the best resources to stimulate economic activities. People need houses, clothes and basic amenities of life and these are the basic ingredients of a vibrant economy. According to predictions by international economists, Pakistan’s economy will leave behind the economies of France, Italy and Greece by 2030. However, the population will also increase to neutralize the effects of the economic boom. Therefore, it is imperative to launch such policies which cover every aspect of the national economy. Corruption is rampant and money laundering is on the rise. Despite signing agreement with Swiss government, Pakistani government will not be able to bring back the national wealth. However, the government can recover the losses by introducing investment friendly policies.
Though the report of the Institute for Policy Reforms calls for steps to increase domestic savings, in principle consumer market is based on spending and not on savings. The more you spend, more will be economic activities and less you spend, less will be growth. Therefore, policies should devised by talking all the aspects of the economy into consideration.
