ISLAMABAD: The only way out of the economic turmoil that Pakistan has been stuck in is sustained and accelerated growth.

Moreover, a political consensus in Pakistan is critical because implementing any new rules of the game in letter and spirit seems highly unlikely without a broad-based political consensus.

This is the crux of the ‘Charter of Economy’ presented by Pakistan Institute of Development Economics (PIDE) amid continuous calls for a charter by different segments of society as well as the political leadership.

It is worth mentioning that the country’s economic indicators over the course of its entire history have fluctuated widely without a clear and sustainable growth trajectory. Despite experiencing extreme economic and political experimentation, the country fails to get on the road to development.

The report was shared by PIDE Vice Chancellor Dr Nadeemul Haque while talking to a group of journalists in Islamabad.

He said the focus had to be long-term, as short-term quick fixes had not worked, and it must start from somewhere.

“The only way out of the economic turmoil that Pakistan has been stuck in has to be sustained and accelerated growth. In this context, a political consensus in Pakistan is critical because implementing any new rules of the game in letter and spirit seems highly unlikely without a broad-based political consensus. First and foremost, the pre-requisite must be consistent policy making for at least the next 15 years. Once there is a political consensus, there should be no off-tracking from the set direction, whatever the case may be,” he said.

According to a press release, Dr Haque said that through the document, PIDE brought to the spotlight, real issues that mattered.

“PIDE views political uncertainty as the root cause of Pakistan’s economic problems. It is evident that policy inconsistency is due to rapid governmental changes and overlapping roles. The undefined jurisdiction of the arms of the state further magnifies policy bottlenecks.

Hence, it is essential to make amends to the political set-up for better system and smooth economic performance. So, he added, the charter calls for empowered local governments and local police, new rules for the cabinet and parliament as well as electoral reforms. “Suggestions comprise putting limits on the number of cabinet members, limit of the term of parliamentarians, direct Senate elections and so on,” he said.

“Moreover, it is pertinent to note that economic growth is not limited to just traditional economic indicators. Instead, in modern times as has been practiced globally, growth is supported by seemingly minuscule but significantly important areas. This involves a modern civil service and a network of independent organisations across the economy. So, under sludge and regulation themes, the charter envisions a modern bureaucracy with digitisation at the centre, monetisation of perks and privileges, bidding farewell to colonial examination and lifetime job security, along with independent authorities with the sovereign board of governors instead of centralised bureaucratic control,” Mr Haque said.

He said that the charter must not be mistaken for a policy document, rather it was meant to set the direction for future policy frameworks.

Published in Dawn, December 26th, 2022