THIS is apropos the article ‘Economy report card’ (Aug 9). During the last 20 years or so with every new government, Pakistan has witnessed a repeated cycle of economic crisis leading towards a stabilisation programme with the assistance of the IMF. We then celebrated an economic boom for a short span of period, and finally ended up in the similar economic crises and seeking help from the IMF.

Interestingly, the country is now entering the traditional era of economic boom (third step of a cycle) of course through huge public financial support and incentives to the construction sector. The economists and financial experts are generally happy on this development; but simultaneously they are worried about its sustainability. This is a great challenge for the government, economists, financial experts and the state — how the current boom may be successfully translated this time into sustainable economic growth?

Prof Rashid Amjad has fairly suggested that the government may draw up a three-year plan to undertake meaningful economic reforms with the aim to achieve sustained economic growth and stability. It is encouraging that the articles and editorials appearing in Dawn are objectively highlighting causes of repeated failures of short-term economic booms, cautioning the sitting government in time to take required action for achieving sustained economic growth.

Interestingly, the economic booms in Pakistan could not sustain owing to the known reasons, including inter-alia: continuing with a minor increase in production and a narrow revenues base, carrying out the half-hearted structural economic reforms, raising public debt continuously without its upfront clearance plan, retaining loss-making public sector enterprises without any action, maintaining weak (fiscal, trade, and monitory) policies, and working with a regressive regulatory framework.

These issues are deep-rooted and chronic; hence they need a well-thought-out, systematic and practical resolution.

The issue of economic stability is not bound to be a success or failure of any government; it is a plain matter of the survival of the nation. Hence, the government may preferably see over and above the political scoreboard. It may immediately prepare a long-term business plan (10 to 15 years) to transform the forthcoming boom into a sustained economic growth.

The plan may highlight the major economic issues i.e. the circular debt, public (local and foreign) debt, revenue base, fiscal and trade deficits, scope of production, etc. It may also provide a clear-cut strategy to resolve them.

The business plan may be shared with parliament, renowned economists and professionals and business leaders for their meaningful feedback, and to create a national and political consensus for its success. The suggested path is definitely tough, painful and challenging; but there is no other option if we intend to achieve the overall stability in the country.

Ahmad H. Ghumman
Islamabad

Published in Dawn, August 26th, 2020