Imagine yourself in an international jeep race competition: where your worn out jeep’s dilapidated engine abruptly stops after making awkward sound, whereas the rest of the competitors are moving in fast speed with enthusiasm, leaving nothing but, mud and dust at your face. Same case applies on economic competition where every state has a goal to surpass others.

The world is constantly getting ahead in this economic race ; updating themselves, overcoming challenges, getting prosperity in order to not to left behind. Global economic system and its opportunities are divided in two parts: the west and the rest. Such unequal divisions ghastly effects when are combined with domestic economic challenges those Pakistan is facing now a days.

The economic vow goes top to down, driven whimsical, ad hoc policies its formulation, execution, and implementation .Such lackluster approach results as fiscal and energy deficit, low tax to GDP ratio, heavy spending on imports and lowest exports, devaluated rupee agriculture live stock and services almost at ventilator.

To overcome these economic challenges Pakistan for a long time depended on international powers and financial institutions and those remain careless and eager so much so that they would hardly hesitate to unplug the ventilator of 207774520 million people merely to charge their phone. First thing first is yearly rising fiscal deficit.

It has reached at $ 23.3 billion and resulted as severe balance of payment issue. The coming government is already set and keen to knock the door of international Monetary Fund it has reach to 5.8 %. Whereas cherry on the cake is lack of energy which severally harmed industries and services, and has slowed down the turbines and engines of growth. Investors and industrialists have wind up their business from Pakistan to other south Asian and Gulf state. 

Little earning and heavy spending has hardly yielded any good result. There is a big glaring difference in Pakistan’s GDP and the exact amount to run the country’s affairs and all system of state. So every government tried to bridge this gap by taking loans neither they cut extra useless expenditure nor enhanced their own skills and utilized their resources to raise earnings. Economy is going through ridiculous imbalance of exports, imports, Pakistan heavily rely on US for advanced weapons, technology, surgical instruments, machines, fighter jets etc and their heavy cost has become liability and compliance on economy.

Owing to large number of buying the rupee is devaluating and inflation is rising, 1k.g tomato price is almost equal to a $, is this how economy runs in developing states? Pakistan is left with $ 9billions as per official statement of state bank, on this account Pakistan can only afford to buy one month goods. And the number of remittances is too low to maintain $ dollar level. On other side Pakistan’s trade with other states is very low almost negligible if compared with buying and selling ratio.

This proved to be fatal besides its fragile monetary policy. According to FBR tax to GDP ratio is 11.2 (2017 -2018) slightly better than previous but the FY18 tax collection falls Rs 129 billion short of target. Such indicators are equally responsible in economic meltdown. In previous budget services to some extent performed as per target. Innovation is the key to success and selling one’s product if it is eye catching and well design. According to world economic forum Pakistan ranks 113 the lowest out of 127 innovative states.

There is hardly any single back up support system for entrepreneurs. Contrary to this U.S congress long ago passed a law supporting entrepreneurs if they go bankrupt in the long run of innovation and business. Economic philosopher in U.S economy brief magazine says’ United states has given their people the freedom to fail and grow again ‘that is the reason behind technological advancement , innovative products and business starts ups .such things is totally missing here. 

 Feeble domestic industry, services, and technological backwardness has damaged to economy and this vacuum is being filled by Chinese products. Small industry owners and workers are afraid of over flooding of Chinese products in markets. OASIS an organization supporting domestic industry conducted a survey and the fear of getting worse was showed by domestic industry owners and workers moreover government and large scale manufacturers was criticized for not taking viable steps.

Services sector also suffering because of non sustainable governance, energy crisis, and technological backwardness. It has been published widely where boilers and engine fault has caused fatal causalities and the Baldia factory incident was not less than any the night mare for labor working in Pakistan. FDI shows slight growth to $ 2.76 billion in (2017-2018) somehow better but overall remain poor, because of unfavorable conditions the investors are preferring other south Asian states Bangladesh and India rather than Pakistan. And it brings chaos and unemployment in youth, ultimately Pakistan experience ‘Brain drain’.

More than FDI the vacuum of brain Drain and skill labor will take years to fill. Thus, low FDI and high unemployment and lack of skill labor has created a severe issue to economy. According to ILO Pakistan have world’s 10th largest work force 63.34 million and agriculture accounts for 43.7 %. Once Pakistan has been agrarian economy,  large chunk was availed by agriculture it has now shrunk to 3.46 according to previous budget highlights around 19 .5% we are earning from agriculture.

Though it has potential to get its previous glorious position back. Drastically slowed agricultural production is a setback to economy which is already weak on industrial and live stock ground. When it comes on catering live stock we as a nation are still practicing century old ways of hoarding. Neither good doctors, nor hospitals in every district or big cities are available for live stock and most of them die causing heavy loss and those which remain alive suffer with diseases. Hoarding (at professional) level is yet to be introduced.

Moreover the shortage of water forces them to move from one place to another. All these creates sufferings for them and results as abandonment and economic loss. Stable and corruption free government is overt secret of strong economy. Sustainable democratic system, with investor friendly policies and incentives, strengthen economy and invite foreign direct investment. China has, three decades ago, adopted the same course of direction.

Contrary to this, what is happening here is unpredictable political system, wild unruly dharna ‘s , extremists and bigots blocking interchanges and main roads causing loss in stock exchange and etc hardly sent good message to the world. Like famous saying Old habits die hard’ seems apt here to define our ritual of abandoning economic policy in mid. As it was done with (strategic policy frame work 2015- 2018) Thus it is another challenge and reason for economic meltdown.

Economy of Pakistan  is facing all these issues because of two major areas which are needed to be worked on immediate basis one of them is; general causes which dragged economy and the second is lackluster approach towards economic policy formulation, execution and its monitoring. Despite being backbone, economic policy is not being given its due attention.

Not because policies are abandoned in lurch, but the detail study of successful and failed are not being done before formulating new and comprehensive policy. Such pre planning is unseen here. In-depth zoom in, systematic synergetic structural process can hardly be seen in economic sphere of Pakistan.

Stake holders reservation make that economic policy and its reservation into a weaker state, their continuous criticism (more often than not genuine) reservation create an uncertain environment and lack of confidence, whose basic requirement is confidence and team work of all stake holders. In this way economic policy loses its credibility and creates uncertainty.

There is lack of consensus and no multi stage approval of economic policy so it became easy to raise questions. Excessive dominance or most probably the veto power of finance minister prevails. Before initiating any policy commerce ministry take all stake holders, business bodies, chambers, research institution, academia federal and provincial ministries and agencies together.

Despite having ample importance, selection criteria in this domain is excruciatingly painful. Recruitment from outside remain resented. Contrary to this, India has attracted top ranking economist of international level from outside Indian economic service. And those who are recruited from outside they experience non cooperation, remain suspicious in the eyes and preoccupied with court cases against his /her appointment.

Furthermore, the intra service rivalries etc create hindrance whereas court interventions end up relying alone on seniority basis. Neither finance ministry nor commerce and trade is taking any interest of capacity building training of young economist , their skills up gradation, and preventing them from lapsing into cynicism, lethargy and being dishonest, in absence of such steps they get disappointed and few leave whereas other remain dormant.

Chief economic advisor and think tank has a vital and leading role to play but they remain at large in playing their efficient role. But most of them lack insight international exposure and experience of policy formulation. Resultantly there is no coherent, consistent policy with long term benefits and sharp strategic objectives. Job of chief economic advisor is to lead the staff for policy making but now he is only there to produce economic survey.

There is absence of provincial economic advisory cell which should be there and headed by 21 grade professional expert, and those selected through merit and transparent recruitment will have been fruitful and help in maintaining harmony amidst both; provincial and federal. There are few general causes as well, effecting economy gravely they hinder progress on economic grounds. Economy is prey to mismanagement and over that population explosion.

There is not a single country in this world where vehicles are being run on non renewable gas but Pakistan. This gas would otherwise have used in running engines, industries and wheel of progress. Though, Pakistan not only have the potential but resources as well, to compete, it has 4th largest coal reserves of the world and thousand kilometer ideal coastal line of Sindh and Balochistan, rich land, culture and tourism etc.  On proper management the youth bulge (more than 60% of population can be an asset from liability, if manage properly.

Investors from either neighboring India or farthest Netherlands must be seen as the emblem of $ and prosperity not with suspicion. Another example of mismanagement is, even the economy is not seen having economic prism and lens rather than putting defense and finding threats everywhere harm Pakistan.

They will bring business and jobs and employment for youth which might otherwise have been prey to terrorism.  Concentration of wealth both; at international and national level gravely harms economy. According to Oxfam report 1% people hold more than 50% of wealth and left negative effects on socio economic and political situation as widely seen now a days. Hefty $ 600billion of Pakistan is stashed in foreign banks, the tax free save heavens.

Such handful number of people is: mostly from builder mafia, own industries ,evade taxes and have large number of stock exchange, they tend to acquire disproportionate political and economic power and that become skewed in favor of that small wealthy group. Those people have a wrinkle finger in every economic issue because they mold economic wave in their favor. Loopholes in governance and corruption menace can be widely seen and have taken its roots. Bad governance, lawlessness, rising population and poverty continue to raise severe issues to economy and keep it at large.

These are one of those few pre requisite surety required for investing money somewhere. And these things remain blurred then the economy will have to suffer, as it is suffering now a days. The economy of Pakistan is in dilapidated condition and has myriad reasons for, few of them are centered with the loopholes in economic policy(formulation, executions, and reservations on it) and the rest are general causes. In order to uplift economy there is dire need to take some steps on warlike bases.

One should start with major structural reforms in economic policy and staff: according to former governor of State Bank Ishrat Hussain ,ranging from the selection criteria, clerk bps 9 to economic advisor and finance minister must be transparent and open recruitment within the cadre of FPSC or impartial third party selection without any ambiguity. Poorly skilled and learned can perform poorly, so putting good battalion will surely yield positive results.

No one should have the veto power on accepting or rejecting an economic policy, but rather it be multi stage approval. Decentralize Sectoral policy making ministers, and finance commission responsible. Taking all stake holders (from business bodies, chambers, research, institutions academia, federal and provincial ministries and agencies together and after extensive discussion then it be sent to cabinet, council of common interest and national economic council.

By following this course of direction there would be reservations on economic matters and policy implementation. To have in-depth zoom in and day to day checking, there must be matrix prepared that clearly outlines responsibilities and accountabilities of different executing agencies key performance indicators with milestones and time lines. Each concerned minister would monitor, review, progress and submit annual report to cabinet. CCE, NEC(national economic council), Parliament and unresolved matters to the Prime minister. Hopefully this would minimize the gap between poor implementation and well intentioned executive policies.

The efficient role of Economic Advisor and think tank, which has poorly shrunk to merely preparing economic survey. Albeit, the job of Chief Economic Advisor  is to lead the staff for policy making process. Moreover think tank’s insight, their interest and international exposure of world’s successful policies will ensure coherent and consistent economic policy. It will be further applauded if they share their policy work on official website and consider recommendations from there. This will make comprehensive and coherent economic policy.

After major structural reforms and policy formulation restructuring and overhauling, there is extreme need to tighten its grip on execution. Equal system where corrupt Tax evaders, politicians, builder mafia , bureaucrats, and all powerful institutions, and elite never go tax free. Rising petrol price, removing subsidies on eatable items soar inflation and chaos. Rather NAB ,FBR, Income tax department and related agencies must be more vigilant and active to increase tax to GDP ratio.

Though this task is hard because of vested interest of powerful class, despite through court intervention and collected efforts this could be done. Pakistan should built exclusive economic zones for business , and investors with 24/7 electricity and security with investor friendly policies and incentives and subsidies given to them to grab bucks into national exchequer. Skill training (STEVTA) type programs where youth learn and work in development and progress need to be started on warlike basis.

Otherwise they might have been prey to extremism. COAS in recent event himself expressed that terrorist are targeting youth now. Three decades ago china had taken the same steps of first controlling the soaring population and then enhancing the skills of those who were already born. And now China is questioning the might of the sole super power U.S. Pakistan can adopt many, if not most, China economic policy steps to deal with population.

Pakistan has never practiced any policy to supporting entrepreneurs and remains at the last in innovative countries even Ghana and Vietnam are ahead of Pakistan. old product design and technological backwardness with no inovataivity compel Pakistan to buy at abroad and sell at home policy whereas; U.S.A ,South Korea, Japan are one of those states supporting entrepreneurs and technical education.

Last but not the least, putting a reign on market forces and groups that might be threats to economy or create topsy turvy and chaos is highly needed here. Along with that,  gender inclusive policies, bringing equality and equity to in workforce will yield tremendous results. Women make half of the country where as the full country is being run because of them.

Since few decades Pakistan’s economy remains indebted, faced ups and downs. People have suffered a lot because of reasons ranging from policy formulation to execution and general causes plus bad governance: like Lack luster approach towards structural reforms, shrinking FDI and severally entangled domestic issues, like abandonment of policies cause unbridgeable harm.

But all these issues are mainly of mismanagement which can be solved many countries from developing to under develop have gone through such challenges and overcome. Now it’s our time to deal with that, by adopting shrewd course of direction surpass those short comings as a sovereign determent nation.

Otherwise these shortcomings and economic dependency can be exploited by other powerful states because here survival of the fittest rule applies. Depending on IMF, loans, U.S.A, Strategic position, neighbors etc is not a good option, Pakistan’s government and its economic policy must have to strengthen its shoulders and flexes its own muscles to get out from this quagmire of melting down economy. (01)