ALTHOUGH the economic content of the prime minister’s speech was not overtly populist, it did contain some measures aiming to ameliorate the lot of the poor.

He announced an employment scheme under which the government would ensure that at least one member of families fulfilling the eligibility criterion got a job.

This translates into a partial employment cover. Where would these unemployed people be accommodated was not clear. If government-run organisations would again be used as employment exchanges, the result would also be the same as before_ wage bills way beyond the capacity of an entity and dwindling productivity levels.

He also announced an increase in the wheat support price to Rs625 per 40kgs. This is a big jump, but still about half the international rate of Rs1,200 per 40kgs.

The step would enable farmers to benefit from rising commodity prices in the international market.

There is still a big gap between local and global market price and therefore high probability of hoarding and smuggling.

The government will have to move fast to procure quickly before the commercial traders enter the fray and manipulate the market.

Mr Gilani has also announced increase in minimum wage to Rs6000. Instead of a food subsidy the government by enhancing the wage level has actually called upon the corporate sector of the country to share with the government the responsibility of feeding the working people all over the country. At the current cost of living in the country even Rs6000 is too low a salary and a five member family cannot be sustained on one income. A dollar a day level for a five member family will be achieved when the minimum wage would be jacked up to Rs9500.

The financial position of the government, nine months into the financial year, is not too enviable. The current account trade and budget deficit has left no manoeuvring space for the government for any direct subsidy.

PM Yousuf Raza Gilani has announced to increase the electricity generation by 2200 megawatt in the current year. Some more details as to how the government intends to achieve this target are necessary. Normally extension or modernization yield early results commissioning of a new plant takes longer to become operational.

The consensus PM speech did give some indication of the issues that the coalition government feels strongly about. He expressed the desire to increase exports of the country but how will that be done when the country does not have any exportable surpluses was not explained.

There was nothing in the speech to clarify how the government intends to broaden the industrial and agricultural base of the economy. The PM succeeded in dispelling the impression that the ruling coalition is consumed by working out power sharing combinations.

The democratic government seems to be alive to the issues being faced by the people, how well could it handle them only time would tell.