KUDOS to Prime Minister Imran Khan’s ‘vision’ of austerity. In my opinion, he should apply the economic concept of ‘marginal revenue product of a worker’ (MRP) to his ministers and advisors.

The MRP is equal to the product of the marginal product of labour (MPL) and the marginal revenue (MR) of output, given by MR×MP: = MRPL.

This formula can be used to determine the optimal number of ministers/advisors to employ at arbitrarily-emoluments. Many economists have observed that the marginal productivity of labour in under-developed countries like Pakistan is zero or negative.

The marginal revenue of a minister or advisor becomes negative if we add overheads like air-conditioning, transport, ministerial payroll, and so on. One wishes Mr Khan luck in his endeavour to ensure the productivity of his cabinet.

Malik Asad

Islamabad

Published in Dawn, August 22nd, 2018