Prices up, economy down

Note: Fragile Economy, and PMLN's contributions to boost economy. On the other hand, people are in severe conditions due to hike in the prices of Petrol, Electricity and so on. Some facts and figures are given. Apart from that there are some suggestions, which must be seen in order to sort out this problem.

The fact that Pakistan is in dire need of economic reform is uncontestable. Its constantly deteriorating economy has forced government after government to look towards international institutions for help. The new PML-N government is no exception. Despite its tall claims of implementing a self-sufficient and an aid-free policy during elections, it expectedly finds itself at the mercy of loans from the IMF. But, the loans are always accompanied with strict conditions. The recent unprecedented price hike in power tariffs, in accordance of the written agreement with the IMF, is a good example.
The record 40-210% increase in electricity prices, coupled with further rise in petroleum prices, has naturally resulted in severe criticism from the politicians, traders and the wider public. Never failing to seize an opportunity to help humanity, the SC has also taken notice of the issue. The PML-N has the perfect scenario in place to create the illusion of being a ‘courageous’ government, taking hard decisions in the face of serious opposition and challenges. However, that is not so.
Reform is necessary, but in what shape and form it takes place is equally important. Ambitions are disastrous if uninformed of ground realities. The people of Pakistan are barely surviving. Their modest way of life is fast becoming a luxury they cannot afford. An average Pakistani finds himself having to choose from education for the children or bread for the family. The rupee is at a record low against the dollar. Inflation, which was at 5.9% in June, is now at 7.4% and expected to rise further. And when all this is going on, to focus primarily on one sector alone by rapidly increasing prices, does not make any sense.
It’s hard to believe that suddenly withdrawing subsidies from power tariffs was the best available option. It would make a lot more sense if the government’s efforts are more diversified. A collaborated effort in all avenues will ensure better and lasting results, without putting unbearable burden on the masses. If the aim is to achieve “stability and growth”, the current policy will prove counter-productive. An environment in which businesses are encouraged to grow is what Pakistan needs. The rise in tariffs will ensure an increase in the costs of businesses; bad for entrepreneurs and worse for workers who rely on them for employment.
Courage is to implement the VAT. It is to introduce the agriculture tax, despite vested interests. It is to hold accountable habitual tax evaders, no matter what their political affiliation. This, what the PML-N has done, is just good old poor decision making.

http://www.nation.com.pk/pakistan-ne...p-economy-down

Will there be consensus?: Multiparty conference on economy

Note: Consensus among the politicians to boost our economy. In this regard APC should be called, and the stakeholders are also invited to take part in this key issue for the betterment of our country. In this APC, the issues must be discussed that what should be the IMP's tendencies and so on...



THE government has invited major political parties to a conference next week to develop consensus on the national economic agenda for turning Pakistan into the fastest-growing Asian economy in the next 10-15 years. Invitations have already been extended, and over 1,000 stakeholders representing academia, professionals, economists and others are expected to attend the event. It is a welcome decision although the government should have moved in this direction before closing the loan deal with the IMF. Still, as the old adage goes, better late than never. We have a long way to go, and a broad-based political agreement on a common economic agenda can help us shape the future direction of the economy. After all, policy consistency, a prerequisite for wooing investment and achieving sustainable growth, cannot be guaranteed without political consensus.

But will the event prove productive? The recent experience of an all-party conference on terrorism will keep many from attaching too many hopes to the event. Chances are that parties like the PPP will refuse to endorse the economic agenda being pursued by the ruling PML-N and indulge in a bit of tit for tat. It would not be surprising because the PML-N, which should have the courage to admit its own mistake, had opposed similar policies when the PPP was in power. The PML-N’s opposition to VAT can be cited as a major example. There is also the possibility of the opposition agreeing to the government’s policies just to keep up appearances and start opposing them later on. It’s not clear how far the government can or is prepared to go to accommodate the concerns and suggestions that the opposition may put forward. Under the IMF loan terms, it doesn’t have room to be accommodating. In any case, the conference should be used as a first step to evolve a broad-based economic consensus. The institution of a framework for regular government-opposition consultations on the economy should help overcome many hurdles in the way of the implementation of economic reforms that are long overdue.

http://dawn.com/news/1049969/time-ou...d-eid-holidays