Pakistan's Agenda for Economic Reforms - Book Review by Daily Times

1.
OP-ED
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lection in Pa
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ng a ‘non-
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y 26, 2018
onom
percentage o
donesia
nce our priva
mensely imp
coming expo
port growth
ross South-A
pends on im
ighbours inc
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goes on to
terprises gro
portant to en
porting entit
s been one o
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proved trad
cluding Afgh
e book says
blishers and
capsulating
deed, it is a
e ailments th
utinely suffe
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ecifically, it
th solutions
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earch and h
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portant to e
orting entiti
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say that on
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ghanistan, In
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than what t
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thor has so
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2.
The bro
include
governa
public e
compet
and inv
coopera
The key
encomp
1. R
a
d
h
d
2. S
re
p
m
C
P
S
3. D
oad issues c
reform, ma
ance, tax po
expenditure
itiveness an
vestment dip
ation.
y recomme
pass, amon
Reforming o
dministratio
delivery in s
help in impro
development
Strengthenin
elationship
provincial go
more strengt
Common Int
Planning Co
Secretariat to
Decentralizin
overed in th
acroeconom
olicy and ad
manageme
nd economic
plomacy and
endations o
ng others, th
of sub-nation
on for impro
ocial sector
oving Pakis
t profile;
ng the worki
between the
overnments
thened Coun
terests (CCI
mmission c
o CCI;
ng non-rele
he book
mic policy
dministration
ent, export
c corridors,
d transit
of the book
he followin
nal public
oved servic
rs. This will
stan’s huma
ing
e federal an
s through a
ncil of
I) where the
could act as
evant tasks m
2
n,
ng:
e
l
an
nd
e
the
ma
4
5
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wo
inc
11.
reg
1
1
1
1
4. naged by
attached
level;
5. Restruct
of trade
impleme
competi
6.Expediti
generati
compan
7.Underta
the Fede
8.Establis
relations
Planning
provinci
Departm
develop
adminis
institutio
9.Deepeni
fiscal de
level;
10. Unde
regulato
rationali
business
11. Imple
facilitate
resolutio
undertaken i
ould yield su
cluding, but
. Introdu
gime in Paki
12. Improve
of publi
and soci
13. Focus on
export p
14. Improve
coopera
econom
enhance
15. Generat
and dece
y the econo
d departmen
turing and e
promotion
enting polic
itiveness;
ing reforms
ion and distr
nies;
aking admin
eral Board o
hing a more
ship betwee
g Commissi
ial Planning
ments so tha
ment plann
tration can
onalised;
ing the adm
ecentralisati
ertaking reg
ory impact a
ise (regulato
ses, and
ementing ju
e businesses
on.
in earnest, t
ubstantive d
not limited
uction of a p
istan which
ed efficienc
c expenditu
ial sectors;
n competiti
promotion;
ed trade and
ation with ne
mies which, i
e dividends
ting product
ent work fo
omic ministr
nts at the fed
enhancing th
institutions
cies for (exp
s for energy
ribution
nistrative ref
of Revenue
e strengthen
en the Feder
ion (PC) an
g and Devel
at bottom-up
ing and
be
ministrative a
ion at sub-p
gular econom
assessment t
ory) burden
udicial refor
s and disput
these reform
dividends,
d to, the follo
progressive
is fair and j
y and effect
ure in infrast
iveness alon
d investmen
eighbouring
in turn, coul
from CPEC
tive employ
or all.
ries and
deral
he role
s in
port)
y sector
forms at
(FBR);
ned
ral
nd the
lopment
p
and
province
my-wise
to
n on
rms that
te
ms
owing:
tax
just;
tiveness
tructure
ngside
nt
g
ld also
C, and
yment

3. 3
In more specific terms, two critical issues
which have been highlighted in detail in the
book under review, among a host of others,
include low tax collection and weak public
accountability institutions in the country.
The tax collection in Pakistan as percentage
of GDP is lower than Bangladesh, China,
India and Indonesia. There has been no
significant improvement in this regard in the
past decade. The picture is further vitiated
by a lopsided share of indirect taxes in the
overall tax collection mechanism which
reflects a weak effort to broaden the direct
tax base.
This is also indicative of a phenomenon of
the elites not used to paying taxes which is
borne out by sequential figures made public
from time to time. There has also been no
effort to bring down taxes on international
trade and phase out exorbitant excise duties.
Another factor which further proves the
regressive nature of the overall tax
collection effort is the rising share of
revenues coming from imposition of various
surcharges.
The other critical factor which has stymied
the prospect of growth in the country is the
weakness of public accountability
institutions. A tenuous link between the
accountability institutions and the regulators
has also led to gross public exploitation.
The independence and integrity of most
accountability bodies also stands
compromised and there have been various
complaints of interference in their working
from government quarters including the
interior ministry.
Similarly, weak support provided to
accountability institutions by various
national intelligence agencies has resulted in
poor preparation of cases against
perpetrators.
Like I said at the beginning, the book goes
far beyond the usual plaudits that such work
may customarily garner. It is like a concise
history of Pakistan’s economy
encompassing its past, present and future.
But, it is for its future that the author,
investing his commendable expertise and
understanding, has outlined a corrective
course that could bring it out of the chaos it
has endured for decades. From institutional
reform to structural adjustments, Dr. Ahmed
has touched on a variety of components that
could cure Pakistan’s economy and make it
inclusive and vibrant over a short period of
time.
Pakistan’s economy has been in shambles
for a very long time, thus effectively
thwarting efforts to attain any substantive
level of relevance in regional and
international domains. The author has come
forth with a credible prognosis for curing a
bulk of grave belittlements and put the
country on course to attaining economic
potency. A shift in the critical fundamentals,
as very ably and professionally enunciated
in the book, will constitute the ground on
which could be raised a sustainable edifice
of economic stability, progress and
development.
A great work, indeed, by a budding
authority from the younger generation.
Kudos, Vaqar!
The writer is a political and security
strategist, and heads the Regional Peace
Institute – an Islamabad-based think tank.
Email: raoofhasan@hotmail.com. Twitter:
@RaoofHasan
https://dailytimes.com.pk/207400/book-review-pakistans-agenda-economic-reforms/