Government or government-sponsored agencies are better placed to generate information about the behaviour of key macro economic variables. Their reliability is a major determinant of not only a realistic input for policymaking but also the credibility of the measures taken by government.

Unfortunately, even some of the good efforts of the present government initiated to address some deep-rooted economic problems have not yielded results, perhaps due to lack of adequate focus on key issues, detachment with the ground realities and poor implementation mechanisms.

However, at least on one count, the government's policies seem to be moving in the right direction, which is the structural adjustment and stabilization agreed with the IMF under the SBA, notwithstanding the depressing economic performance.

In our exuberance to assume for ourselves the entire credit for better performance, we should not play down international factors. Continuing support from the US and other western countries due to Pakistan being a major ally in war against terrorism, thanks to sustained inflow of workers' remittances of nearly $7.2 billion during the last two years, which has helped in further augmenting the foreign exchange reserves to over $12.5 billion.

Some demand from Afghanistan's limited reconstruction activities, some fiscal and other incentives to housing and cement industry have also helped in improving the economic performance. What is our contribution in those massive reserves?

The much-trumpeted improvement in the economy is based only on the increase in foreign exchange reserves to 12.5 billion. Of course that this is due, not to any magic policy of the government, but the course of world events is simply ignored.

No investment has come forth, unemployment and poverty have increased and that the lot of the man in the street has never been this bad, are all dust that is conveniently shoved under the carpet.

The foreign direct investment and savings all went down considerably. The privatization programme of the government also could not take off, notwithstanding the grand visions of raising $ 4 billion through it.

More over if a depressed year is taken as the base, it will show the subsequent years in a better light. The reverse will be true in case of an unusually robust year as the base.

Amongst its problems include a colossal and nearly unserviceable level of debt, ever-increasing fiscal and trade deficits, low tax base, and abysmal rate of savings, declining investment due to erosion in investor confidence, continuing trade and current account deficits, a narrow export base, poor state of its human and other resources, a crumbling public sector and a highly inefficient and corrupt bureaucracy. The cumulative result of these factors is the growing poverty and unemployment.

Pakistan has succeeded in maintaining of current account surplus due to strong reliance on remittances. But this is a temporary phenomenon, as remittances have a declining trend for the last two years according to survey 2003-04.

This will lead a tremendous pressure on current account in days to come, as trade deficit also reaches to a frightening figure of $3 billion. Similarly debt burden will further put pressure on current account as US dollar is also on rise.

Few months back government conducted a survey on poverty. The survey under reference was primarily urban based while poverty is more rampant in rural Pakistan that is predominantly, indeed wholly, dependent on agriculture.

Our policy makers and planners shouldn't beat the drums of success as far as poverty issue is concerned. Similarly per capita income of $652 is also a stark contradiction of prevailing realities.

However, despite the improvement in economic indicators, and to some extent, in investor sentiment (reflected in the growing investment-to-GDP ratio), an element of uneasiness and uncertainty still prevails.

The question is why, despite better indicators and a higher economic growth, is there still general disquiet amongst the investors. A recent report prepared by Goldman Sachs argues that over the next 50 years, India is likely to be amongst the top three economies of the world with the potential to grow the fastest.

Similarly economies like Malaysia, Indonesia and Korea, etc also have gained momentum and it is only made possible due to sound implementation of policies, leadership qualities and the most importantly they don't have any political disputes over national interest, pride and dignity.

But a very sad Pakistan case as we failed to develop a consensus on Kalabagh Dam when it may prove to be a backbone for Pakistan economy and again kept that mega project in a gloom.

Good intentions are not enough to achieve desired results. It also needs commitment, hard work, and above all professional approach to tackle the complicated technical issues.