Pakistan’s past coalition government deserves credit for its tenacious efforts to confront economic and financial hurdles, often at the expense of political capital. However, despite their best endeavors, the situation remains far from ideal, and in fact, it continues to deteriorate with each passing day. While the country has managed to avert the dreaded specter of default, it has come at a steep cost that its citizens are struggling to bear. The relentless surge in inflation, driven by an unrelenting currency devaluation at the insistence of the IMF, frequent hikes in fuel prices, and relentless increases in electricity and gas tariffs, has cast a dark shadow over the nation. In a country where the minimum wage has recently been set at Rs. 31,000 per month, it is mind boggling that the average household is burdened with electricity bills ranging from Rs. 20,000 to 30,000. It’s no wonder that protests against these inflated power bills have erupted nationwide. Industries are shutting down or relocating to neighbouring countries due to the soaring cost of doing business, a brain drain is underway, developmental activities are stagnant, and millions are being pushed below the poverty line.
Legitimate concerns among patriotic Pakistanis now suggest that the country is treading into dangerous waters, necessitating bold measures to revive the economy and rebuild the eroded trust of its citizens in the capacity of the system to deliver.
The Pakistan Observer has consistently championed the national cause and promoted unity. Beyond its role in spreading awareness through news coverage and thought-provoking editorials, the newspaper actively supports policies and programs aimed at improving the economy and addressing citizens’ issues by hosting seminars, conferences, and Roundtable Conferences (RTCs) on critical topics.
In light of the alarming situation, I have reached out to experts and professionals from various fields to gather their insights on averting a catastrophe. Based on these fruitful interactions, I present a set of recommendations for consideration by policymakers. Fortunately, the Prime Minister has already sanctioned the establishment of a cabinet committee, led by Finance Minister Dr. ShamshadAkhtar, with a mandate to craft a roadmap for economic revival within a fortnight. I trust that my ideas and proposals will prove relevant in this critical context.
Energy emerges as a pressing concern, particularly the circular debt, which has ballooned to over three trillion rupees, wreaking havoc across the sector and driving up electricity tariffs. Energy sector entities and corporations (OGDCL, PPL, SNGPL, SSGC, PSO, HUBCO, IPPs, WAPDA, KE) are raking in substantial profits (for example, OGDCL alone records an annual profit of Rs. 200 billion but pays dividends of just Rs. 30 billion). This issue can be resolved by reconciling the receivables and payables of these entities. Simultaneously, we must invest in modernizing power generation, transmission, and distribution networks to curtail losses and inefficiencies, while implementing robust measures to combat theft. The plan to devolve distribution companies to provinces is a step in the right direction, and we should aggressively promote the use of renewable energy to lower tariffs.
Pakistan grapples with a chronic shortage of foreign exchange due to sluggish external inflows, perpetuating pressure on the rupee, which has witnessed record devaluation in recent years. To alleviate this, the government must impose bans on luxury goods imports and rely on locally available items, potentially reducing imports by $20 billion and converting the current account deficit into a surplus.
Expeditious development of Gwadar port can alleviate Pakistan’s economic challenges by attracting investment and facilitating trade. While we are developing the deep-sea port in collaboration with China under the China-Pakistan Economic Corridor (CPEC), we must prioritize industrial zones and trade through this port to leverage enhanced economic interactions with Central Asian Republics.
All loss-making entities must undergo restructuring and/or privatization, with top-level appointments and board director selections based solely on merit. Similarly, Port Qasim boasts a massive industrial zone, but bureaucratic hurdles and a non-professional environment deter investors. Streamlined decision-making, reduced charges, and swift approvals can reverse this trend.
The paradox of record-high steel prices juxtaposed with the closure of Pakistan Steel symbolises neglect in the Islamic Republic. We should revitalize it by selling its vast land holdings to generate funds for clearing debts and establishing profitable ventures on the sold land.
The national flag carrier, PIA, despite its potential for revival, continues to incur losses due to unwarranted government interference and an overstaffed workforce. A crucial aspect of its recovery entails investing $40 to $50 million for restructuring, enabling it to become profitable in two years and repay its loans within five years.
Pilot and crew training centers are non-operational, posing a potential shortage of pilots in the coming years. Investment in operationalizing these centers and acquiring Cessna planes is imperative. Flight simulator facilities and collaborations with Gulf Air for EASA certification can further enhance training.
Untapped opportunities lie in island development, particularly in Bandal and Buddu islands off the Karachi coast, which can be transformed into resort cities with international collaboration, attracting significant investment and generating an estimated $100 billion in revenue.
Pakistan’s vast reserves of gold, copper, coal, and granite remain underexploited. We should prioritize the establishment of refining and processing facilities, offering incentives and security to investors.
Additionally, Pakistan’s tourism sector holds immense potential. Focusing on this sector can yield substantial revenue and stimulate economic activity. PTDC must be restructured to offer modern and comfortable lodging and transportation facilities, along with tourist information services.
Agriculture presents an opportunity to not only meet local food demands but also generate surplus for export. Achieving this requires water preservation, quality seeds, effective farming practices, proper grading and packaging, and robust marketing, along with local pesticide production.
Education reform is vital to ensure quality education access for all children, with educational institutions offering free education to 20% of needy students, covering admission charges, monthly fees, uniforms, and book expenses. Likewise, making healthcare more affordable and accessible to everyone is essential.
A national debate on these critical issues can crystallize ideas and serve as the foundation for effective decision-making. The path to economic stability and prosperity demands concerted efforts and bold measures, but the potential for a brighter future for Pakistan is within reach.
