PM vision of Pakistan’s future

Addressing Health Insurance Cards distribution ceremony for the deserving people at Governor’s House Lahore, Prime Minister Imran Khan expressed optimism about Pakistan to become a great country in the  in the comity of nations and its people will enjoy great respect during visit and stay abroad. Prime Minister vowed to defeat the mafia who are bent upon creating hurdles in the pursuit of his mission of turning the country into a true welfare state.

While referring to the recent acute shortages of food commodities and their high prices, the Prime Minister assured the audience that no leniency shall be shown to elements that mint money by creating artificial dearth of essential consumers’ goods in the market and fleeced people by charging pseudo prices. He said that an effective demand and supply system shall be established in the country that no such crisis occurs in future.

The Prime Minister attributed PTI’s twice sweeping polls in Khyber Pukhtunkhwa to expansion of health cover in the province under the facility of Health Insurance Card. He briefly touched upon the impact of worsened macro-economic imbalances that present government inherited because of corruption and bad governance of previous two elected regimes, particularly referring to massive current account deficit of $40 billion which necessitated currency devaluation, making the imports of edible items, industrial raw material and intermediate goods very expensive.

People of Khyber Pukhtunkhwa broke their past political tradition of not giving mandate to the outgone ruling political party and gave two-third majority to PTI by returning the party to power for second consecutive term. Provision of free medical treatment to poor people was not the only decisive factor for PTI victory. Other factors such as appointment of school teachers strictly on merit, curriculum reforms and ensuring merit to greater extent by reforming the selection criteria of Provincial Public Service Commission by reducing interview marks from 70 to 25, and for the first time including the written test score for merit determination along with academic percentile. Previously there was no transparency in selection in the selection procedure of this Commission. It merits mention that in ANP government jobs were being sold out at unaffordable price which is still talk of the town.

Shortages of food commodities and high price spiral were not caused solely by hoarders and profiteers. It was the cumulative effect of criminal neglect of past governments and the present one as well to put in place a comprehensive agriculture policy for boosting output of cereal crops, pulses, sugarcane, cotton and vegetables. Setting up of effective demand and supply system on the pattern of Keynesian Economic Model of Great Depression Era of late 30s works well only when people have sufficient purchasing power to spend more money on consumption. The economy is under the grip of stagflation over the past 12 years which has become harder hitting for the economy because of electricity and gas tariff increases, key interest rate and regressive taxation regime. IMF Mission that recently visited Pakistan for the second review of its Extended Fund Facility Programme of $6 billion has suggested further increase in the price of utilities and levy of more taxes well before third tranche of $452 billion is released. Independent economists have questioned the IMF condition of 45 percent increase in tax revenue in one go when recession hit economy has further shrunk because of the monetary and fiscal measures which have been implemented under its recommended so called structural reforms. The government may not be able to renegotiate ‘take or pay clause’ included in the shady LNG import deal made with Qatar. However, there seems no compulsion to review power purchase agreements with IPPs to lower electricity price to achieve the proposed objective of ensuring regionally competitive tariff, one of the salient component of textile policy 2020-25. Let us hope bold decisions shall be made to make economic environment favourable to stem the process of further shrinking of economy and putting it back on the revival path for subsequent expansion.