The Pakistan Institute of Development Economists (PIDE), which has been instrumental in carrying out fruitful research on economic issues and suggesting tangible recommendations, has come out with another initiative of presenting a deep reform agenda aimed at transforming Pakistan’s economic landscape. Its Vice Chancellor, Dr Nadeemul Haque, has cited key areas of the agenda as energy, education, urban development, state-owned enterprises (SOEs), the Federal Board of Revenue (FBR) and health. The agenda lay emphasis on decentralization, professionalism and the use of technology and research to drive governance improvements. It also calls for regulatory modernization, tax reforms, market liberalization, energy sector efficiency and improvements in agriculture and banking.
The comprehensive recommendations of the PIDE are generally in line with the new thinking in the power corridors to get rid of the old system and move towards greater self-reliance. The agenda takes care of most of the economic and financial woes of the country and has the potential to make a difference provided a genuine beginning is made in the forthcoming national budget. The recommendations made by the institute in relation to tax reforms need special consideration by the Finance Ministry and the FBR as these call for a uniform tax rate across all income sources, eliminating presumptive tax regimes and transitioning to advance income tax mechanisms besides a uniform sales tax system, increased excise duties on harmful products and automation in tax administration to reduce human interaction and enhance efficiency. It has rightly called for accountability of provincial funding as funds were frequently used for luxuries rather essential projects. We hope that apart from much-needed relief for different segments of the society, the government would come out with a comprehensive reform agenda after consultations with its allies as passage of the budget and success of reforms are directly linked to their cooperation because of numbers’ game at the Centre and different set ups in the provinces.
