07
July

Emerging Economic Opportunities Implications for Maritime Logistics Industry

Political changes in Pakistan in recent past have taken place with parallel strides on regional security management and general demand of the populace to move forward on economic front. Years of engagement with combat forces of foreign and far off lands in the name of war on terror, and fight against extremism, have blurred our vision and foresight on many of the aspects. Development index have been on decline and state of internal security had its own effects on the growth rate. Large foreign investments and long-term ventures have their own demands vis à vis the policy formulation and economic direction as a nation and state.

Announcement of an economic corridor between China and Pakistan linking Kasghar and Gwadar through multi-modal communication lines can be termed as a sigh of relief for a weakened economy and a long awaited step in the right direction. Government, having a probable five years to its credit and an outlook of being enterprises friendly, is en-cashing on the historic friendly relations between the two countries termed as higher than mountains and deeper than oceans. And here comes the vision and desire to link these mountains and oceans with trade goods and economic opportunities freely flowing to and fro.

This is in this backdrop that a need has arisen as a national requirement and international obligation to study the concept of economic corridors or land bridges, whatever we may call it, and analyze how the future lays ahead of us. This will not only bring in the much desired clarity in our minds about our future, but will also facilitate us to dove-tail our policies, directions and attitudes on a whole.

Changing Perspective

China may have been a distant land in historical context for many of the great nations, flourishing societies and colonial powers. But fact remains that it was there in all contexts and has had its own influences on the globe. People mentioned it in daily lives and proverbs, and fairy tales have had many of the Chinese characters. Silk route and Chinese spices have been in discussions on international and foreign affairs and none of the strategic and defence studies were complete without mentioning of lands beyond the mighty Himalayas.

Rising power of China, in the so-called uni-polar world, is changing the global dynamics of inter-state relations and economic interactions in all parts of the world. Special focus has been on the Asia being the largest and richest continent of the world in terms of area, population and natural resources, and also being in the immediate neighbourhood of China. The Cold war decades gave many of the vocabularies and terminologies of security management and economic progress, major portion of which can be termed as redundant and obsolete now, except the few like access to The Warm Waters.

A cursory look at the map of China can lure the on-looker to divide it in three equal and natural parts i.e. coastal belt, central depth and western outreach. Till to date, much of the Chinese development and investment has been along the eastern coastal region spread out from Vietnam and Cambodia in the south to Koreas and Japan in the north. This belt is dotted with small and medium to large ports and harbours with terminals. Days and nights, ships of all sizes and types pour in from all the nooks and corners of the globe to bring in the raw materials and unfinished goods for the factories and plants of China.

Coastal endeavours of China over-flowed and out-reached naturally and possibly to central region, especially the academic institutes, research centres, governmental programmes and strategic assets. High-valued and high-tech products flourished in central China with much of their logistic lines based upon much expensive aviation industry.

Having been saturated to some extent and based upon the concept of diminishing returns, China was bound to shift its developmental focus from coastal belt and central China to west China region and this shift is already over-due. Post 9/11 developments and wars blurred the picture for all players, whether large or small, and many of the countries including China could not take risks for a strategic shift in their developmental policies. Many of the programmes and plans were put in cold storage for years to come for want of the conducive socio-political and geo-economic environment.

This approach of western shift has its own implications and demands on policy formulation as well as development strategy for both China and its neighbours. While China has taken the responsibility on its own shoulders, for obvious reasons and high stakes, to educate and promote various stakeholders and players of this new Great Game, Pakistan is duty-bound for the sake of economic prosperity and social welfare of its people to undertake an appraisal and study the various demands put in by this new strategic shift.

Overland Bridges

One of the major demands of emerging economic opportunities in west China region is the establishment of linkages with the deep sea and logistic lines. Just on line with the coastal belt having parallel access to maritime cluster at sea and ashore, western China needs to havea coastline as an outlet to whole of the world, especially the energy centre of the Gulf and centres of raw materials in the East Africa. These logistic lines will act as the blood-lines and will spear-head the exponential growth and development of the least developed areas of China.

Need of a near coast for its western region has long been in the strategic plans of China and many of the outlets have been on the list of probables. Investments have been made for capacity building of these outlets including the much talked about Gwadar. Gwadar Port is ideally located on the hub of international Sea Lines of Communications (SLOCs) to act as mother port for large ships and carriers including bulk and container types. Whether its trans-shipment trade or energy transfer, sea lines emerging from connecting waters of the Arabian Sea including the Gulf, Red Sea and East Africa give their strength to the Gwadar Port, and it can righ tly claimed to be a stepping stone for any sea-linkage of the western China.

 Land bridges and economic corridors for sea linkages are not new to the maritime and economic spheres; rather this concept has handy examples in many parts of the world including Europe and North America. Thanks to the uniformity and connectivity brought in by the European Union (EU) within its member states, many of the smaller ports and maritime outlets have given way to the strategically located large ports and harbours. Much of the coastal belt and hinter-land is then dependant on coastal shipping of feeder ports and land bridges crossing over all sorts of terrains.

Maritime Logistics

Rising density and diversity of maritime traffic will have its own demands on maritime management and policy formulation. Large carriers and mother ships will be destined to Gwadar carrying cargo of all types. Coastal shipping in Arabian Sea and adjoining waters of Gulf, Red Sea and East Africa is certainly going to be re-shaped altogether. Pouring in of raw materials and un-finished products in parallel with energy sources will stretch the maritime cluster at sea and ashore and security management will also be a daunting task.

Based upon the experiences of managing a mega metropolitan on the coastline having a large port, we need to plan and develop Gwadar city on modern lines of integrated management and urban development. We need to control and mitigate the corresponding effects on maritime environment and coastal zone. While taking care of the original and local populace, we will have to welcome the new arrivals from within and outside of the country as maritime professionalism and expertise will be required in abundance and variety.

Logistic lines with their connecting arteries will be stretched in and out of Gwadar to Kasghar overland passing through a diversity of terrain vis à vis both the physical features and cultural norms. Logistic lines and their arteries, when appropriately developed, operated and managed, can themselves be a source of promoting and strengthening the much needed national cohesion of Pakistan.

Conclusions

Pakistan has long been involved and immersed in management of internal and regional security issues and now time has come to take a turn in the right direction for welfare and prosperity of its people. Opportunity of having an economic corridor for the west China region can put us on a track of economic and trade development, provided that we prove ourselves equal to the task and are able to plan and manage accordingly. We can ripe the fruits of our strategic location on the world map in the comity of nations by appropriately moving ahead with consistency in policy formulation, development of maritime cluster, building of transportation infrastructure and ensuring best practices while managing the maritime and internal security aspects in parallel.

In context of emerging economic opportunities in the west China region and development of an economic corridor from Gwadar to Kasghar, following are the areas that can be emphasized;

•                       Plan of developing the economic corridor can be a turning point in the welfare and prosperity of our nation as a whole and we should be all geared up to grasp this opportunity.

•           While China has become an economic giant with at least one third of its area in need of logistic linkages, we need to facilitate these linkages for the sake of our own growth and development.

Maritime cluster in Pakistan, both at sea and ashore, should be ready to grasp this magnanimous change while ensuring long-term sustainability of operations, especially vis à vis maritime environment and security management.

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The writer is a qualified Master Mariner (F.G) and a graduate of World Maritime University.

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09
July

Insight In Chinese Economic Growth

Written By: Shah Faisal Afridi

China’s share of global GDP on Purchasing Power Parity (PPP) basis rose from 4.113% in 1990 to 14.531% in 2011 and over 16.479% in 2014. During the past 30 years, China's economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented system that has a rapidly growing private sector. A major component supporting China's rapid economic rise has been growth in exports. Chinese officials contend that China is a “socialist-market economy”. This appears to indicate that the government accepts and allows the use of free market forces in a number of areas to help grow the economy and plays a major role in the country’s economic development. Chinese leaders are serious about the economy both at home and across the world. The Chinese government knew that it must maintain a certain economic growth rate on one hand, make reforms on the other, and strike a delicate balance between the two.

Reforms have always been at the top of the government’s agenda and currently China’s focus area is domestic commerce system. China has progressed in four areas in terms of reforming the domestic commerce system. First on the basis of thorough research, it has formulated the plan for the comprehensive domestic commerce reform and mapped out the overall strategy for advancement. Secondly, relevant legislation as it was insufficient in this area before, especially in comparison with that in foreign trade. The laws and rules were developed in state: a) Merchandise Circulation Law, and rules on recycling and disassembling of end-of-life vehicles; b) Rules on pawnbroking; and, c) Rules on fair trading between retailers and suppliers. The rules have been listed on the State Council’s legislation plan for 2014.

China maintains that economies at different development phases should embrace the spirit of solidarity in difficult times, discard zero-sum practices, and join hands to meet common challenges. China teaches a lesson to the nations i.e, “To reshape the economy, it is important to institute an open, cooperative global economic and trade system.”

Open economic system is considered as the stimulus factor behind Chinese economic growth. Encouraging progress has been made in five areas in terms of modifying this system. Firstly, overhauling the foreign investment administration regime. China is revising the administration methods for overseas investment which will substantially streamline the verification procedures for setting up businesses overseas. Second, the further advancement of Shanghai Pilot Free Trade Zone. With State Council’s approval, 31 measures have been adopted for greater liberalization in the zone. Third, to create new models of processing trade and deepen reforms on administrative approval procedures, to accelerate Free Trade Agreement (FTA) strategies on the basis of FTAs with surrounding countries. Fourth, to move faster with the unification of laws governing domestic and foreign investments. Fifth, to promote other works related to building a new open economy such as advancing negotiations on environmental conservation, investment protection, government procurement and e-commerce under bilateral and multilateral frameworks in a positive and steady way.

In 2000, China initiated a new “Go Global” strategy allowing Chinese firms to invest overseas. In September 2007, China Investment Corporation (CIC) was launched with $ 200 billion fund. The key factors for this move were: to utilize massive accumulation of foreign exchange reserves and to obtain natural resources, such as oil & minerals.

In 2012, China invested in Canada, Australia and in some European countries. Singapore, Japan, South Korea, and the Philippines have also attracted bigger Chinese investment in comparison with other countries. In terms of size, oil, gas, and energy deals, China’s three energy giants, CNOOC, Sinopec, and Sinochem were the most noteworthy energy projects.

China has FTAs with ASEAN, Pakistan, Chile, Hong Kong, Macau, New Zealand, Singapore, Peru, and Costa Rica. China also has an economic co-operation framework agreement with Taiwan. China is currently in the process of negotiating FTAs with the co-operation council for the Arab States of the Gulf which include Saudi Arabia, Kuwait, the UAE, Qatar and Bahrain, Australia, Iceland, Norway, Switzerland, and the Southern African Customs Union which includes South Africa, Botswana, Lesotho, Namibia and Swaziland. In May 2012, China, Japan and South Korea agreed to begin negotiations for an FTA. China has also considered negotiating an FTA with India but has made little progress till date.

Few people in China are concerned about the projection of foreign trade in China, but it is observed by analysts that confidence of exporting enterprises is rising continuously and export situations are improving every single month. Few experts also comment that, China’s foreign trade no longer enjoys advantage, especially when it comes to price and cost. But it is evident that during the period following the promulgation of the decision of the 18th CPC Central Committee, the Chinese Government has reaffirmed that it treats all types of enterprises equal, and foreign investment policy remains unchanged. The existing environment for foreign enterprises in China is equally favourable as it was before and China still enjoys a comprehensive competitive edge, in shape of complete infrastructure, well-developed industrial support, a well-educated labour, and a trained workforce.

The competitiveness of China’s private enterprises is also strengthening. Since China’s WTO accession, their export growth rate has been 18.4 percentage points higher than the national average on a yearly basis. They have become the most dynamic market players with the greatest export potential achieved by cultivating a group of internationally competitive industries and businesses. China owns proprietary intellectual property rights to large-scaled complete plant equipment used in communication, power, rail transport, and enjoys conspicuous advantages in terms of price and technology.

Chinese leader, Deng Xiaoping is considered as the founder of Economic Reforms in China. It is due to his vision that Chinese Economy has become “The Economy of Scale” which means that transportation or shipping expenditures of a product are more than its cost of production. The economic reforms have transformed the Chinese economy and produced a period of spectacular growth.

China maintains that economies at different development phases should embrace the spirit of solidarity in difficult times, discard zero-sum practices, and join hands to meet common challenges. China teaches a lesson to the nations i.e, “To reshape the economy, it is important to institute an open, cooperative global economic and trade system.” The international community should continue to work towards diversity, openness and mutual benefit. Developed and emerging economies in particular should bring out their respective strengths to drive global economic growth by acting as the “double engines” of the global economy, reinforcing and benefitting each other. This way, we will definitely open up a new prospect of economic globalization.

The writer is CEO of Ruba SEZ Group and the President of Pak-China Joint Chamber of Commerce.
11
July

Rising Trade Costs Impair Trade Prospects

Written By: Dr. Zafar Mahmood

Trade costs, incurred locally and across the international borders, significantly affect international trade. Trade costs effectively form an important barrier to trade and thus impede the realization of gains from trade liberalization. Thus, any program of trade liberalization must take into account the role of trade costs. Owing to the importance of trade costs in explaining the size and direction of trade, experts are now increasingly focusing on its cost. Consequently, it has become an area of key interest within the modern stream of trade literature.


Global experience shows that countries that made concerted efforts to reduce trade costs have undoubtedly benefited, in terms of surge in their export earnings. Some of them have gained both comparative advantage and competitiveness and consequently are able to turn around their trade pattern.


One would like to ask a pertinent question, what exactly are the trade costs? They include all the costs incurred in getting goods to the final user, excluding the cost of producing the good itself. Hence, trade costs include transportation charges (both freight and time costs), policy barriers (tariffs and non-tariff barriers), information costs, contract enforcement costs, costs associated with the use of different currencies, local distribution costs (wholesale and retail) and legal and regulatory costs.


Sources of trade costs can be divided into two main categories. First category includes entirely bilateral factors of separation between the exporter and the importer, which are more dependent on factors like geographical distance, common border or sharing a common language than particular policy choices. The second category is composed of factors linked to international connectivity such as air or land or maritime transport services, tariffs and non-tariff measures, and other factors that facilitate or hinder trade.


Evidence shows that with growing multilateralism and regionalism in the world, countries have considerably reduced the tariff rates, on average less than five percent for rich countries, and with a few exceptions are on average between 10 to 20 percent for developing countries. With a drastic fall in tariffs on the one hand, there are, on the other hand, some other barriers to trade that are still hampering the trade performance. Most important amongst them are barriers relating to infrastructure and its quality.


Poor institutions and poor infrastructure distort strategic trade policy focus and objectives, not only in terms of the traditional mechanisms of tariffs and quotas but also of infrastructure and logistics, the so-called “behind the border issues.” Thus, besides the differences in economic size, technologies and factor endowments, the differences in trade costs, which act as a friction to trade, is an important reason as to why some countries trade more than others.


In an increasingly globalized and networked world, trade costs are of great importance from a trade policy perspective. This is because they act as a determinant of the pattern of bilateral trade and investment as well as of the geographical distribution of production. Moreover, they also determine a country’s ability to take part in regional and global production and supply chain networks. Many countries are eager to reap the benefits that such networks can bring, including trade and investment-linked technological spillovers and stronger employment demand in manufacturing industries. Understanding the sources of trade costs, and in particular the types of policies that can reduce such costs, is thus a key part of debate over production and supply chain networks going forward.


International trade costs are large and vary widely across countries and sectors. These costs are, in general, higher in developing countries than developed countries. This is mainly due to the existence of substantial tariffs and non-tariff measures accompanied by poor quality infrastructure, dysfunctional transport and logistics. Trade costs affect the balance between different sectors of an economy. Splitting up these costs help identify which area needs to be focused on in terms of policy decision. For example, if no account is made of trade costs and trade policy decision is solely based on comparative advantage then all resources will be diverted towards one particular sector at the expense of other sectors; thus creating a bias against other sectors of the economy.


Pakistan’s major trading partners are China, USA, UK, Saudi Arabia, Malaysia, Japan, Germany and UAE. EU has now emerged as Pakistan’s largest trading partner. Total trade between the two amounts to about $10 billion with Pakistan’s share in EU market of about 0.09% and the share of EU in Pakistani market is 11.39%. Pakistan also has strong trade ties with Asian countries like China, UAE, Saudi Arabia, and Malaysia. Main reason behind massive trade of Pakistan with Asian countries is lower transportation costs, similarities of consumer tastes and trading priorities.


The size of Pakistan’s current trade doesn’t truly reflect its full trade potential. This is mainly because the direction of Pakistan’s foreign trade, which is trade cost dependent, has not changed much over the time. Keeping in view the trade potential of Pakistan, it is imperative for Pakistan to pay serious attention to the issue of higher trade costs. Only then it will improve its position in global supply chain networks to realize the gains from international trade.


Trade cost estimates for Pakistan show a decline over the time. That is a good omen to realize the full trade potential of the country. The agricultur related trade costs are comparatively higher than non-agricultural, mainly due to the existence of policy barriers, including high tariffs and non-tariff barriers as well as trade related measures that hinder entry of imported agricultural products in the country. It is also because the processing and storage costs of agricultural commodities are higher than such costs for manufactured goods.


Reduction in trade costs can be attributed to improvement in port infrastructure and shipment. An index reflecting shipping connectivity for Pakistan shows an improvement from 19% in 2003 to 32% in 2012. As more than 95% of total freight trade of Pakistan is sea borne; thus, an improved and efficient port infrastructure that would reduce trade costs, would definitely promote trade.
Bilateral trade costs between Pakistan and UAE are the lowest, followed by Bangladesh, Saudi Arabia, Malaysia, UK and China, while the highest is with India.


Despite significant reduction in trade costs in recent times there remains a substantial room for lowering them further. High bilateral trade costs with some of the larger trading partners in particular calls for measures to reduce trade costs between trading partners. Thus, our policymakers need to address the dynamics of higher trade costs to improve country’s absolute and relative position in global trade.


Since higher trade costs lower the competitiveness of trade firms and limit the potential benefits of trade as well as impair trade prospects; it is, therefore, imperative for policymakers to take policy actions in the following direction to reduce trade costs:


• Effectively implement the commitments made in the WTO’s trade facilitation agreement, which Pakistan has recently signed; in particular by reducing red tape at the border crossing.
• Expedite clearance of all type of goods particularly perishable goods at border crossings.
• Improve port connectivity, cargo handling and means of transportation, i.e., through roads, railways and air links.
• Non-tariff barriers must be streamlined and harmonized with international standards.
• Reduce the cost effect of longer distance on trade with partner countries by developing soft connectivity through internet, publicity campaign and electronic media.

 

The writer is a Professor of Economics at School of Social Sciences and Humanities at NUST, Islamabad.

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Evidence shows that with growing multilateralism and regionalism in the world, countries have considerably reduced the tariff rates, on average less than five percent for rich countries, and with a few exceptions are on average between 10 to 20 percent for developing countries. With a drastic fall in tariffs on the one hand, there are, on the other hand, some other barriers to trade that are still hampering the trade performance. Most important amongst them are barriers relating to infrastructure and its quality.

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06
August

From Paper Pins to Mega Projects Socio-Economic Achievements of Pakistan since Independence

Written By: Dr Zafar Mehmood

Pakistan was created with an aim of developing it as a progressive modern country, which could offer equal socio-economic opportunities and benefits to its citizens. At the time of its creation, Pakistan was a country of 30 million people. Despite being primarily, an agrarian economy, it had to import most of its food to feed its citizens. Agricultural output then accounted for about 53% of GDP. The industrial sector at that time consisted of a handful of medium and cottage industries. Per capita income was less than $100 whereas literacy rate was 10% and life expectancy stood at 32 years.

With concerted efforts of the leadership, Pakistan's average annual GDP growth rate in the first five decades remained higher than the average growth rate of the world economy. Average annual real GDP growth rates were 3.1% in the 1950s, 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. Average annual growth rate fell to 4.6% in the 1990s mainly due to political instability, while remained almost same in the 2000s to 4.7% owing mainly to internal security problems. However, the average annual growth rate was about 7% during 2003-04 to 2006-07.

Literacy rate in 1947 was 10%, which has gone up to 58% in 2011-12. Despite this achievement, literacy rate remains dismally low when compared with other developing countries. This is a major challenge to be addressed for rural and female population. Life expectancy has now gone up to 67.2 years. Poverty which was around 46% in the early 1960s has come down to about 21%. With a GDP growth rate of 6.8% in the 1960s, Pakistan was considered as a role model of economic growth for other developing countries. Many countries emulated Pakistan's framework for economic planning. Later on economic mismanagement and implementation of imprudent economic policies caused sluggish growth in the 1970s and 1990s and due to insufficient domestic resource mobilization, the country accumulated large public debt. The economy improved in the 1980s, with a GDP growth rate of 6.5%, when policy of economic deregulation was adopted. Balance of payments situation improved with large inflow of workers' remittances. Afterwards, economic situation became uncertain as a consequence of different external and internal shocks-including Asian financial crisis, economic sanctions after nuclear test, global recession, severe drought, military tensions with India, and the 9/11 event which resulted into new and greater influx of Afghan refugees into Pakistan.

Over the past sixty eight years, the share of the agriculture sector has come down to 21.5% of the GDP. Despite this decline, the agricultural sector now not only satisfies the domestic needs of wheat, rice, sugar and milk at a much higher per capita consumption level, but also exports its surplus production.This was made possible as Pakistan doubled its cultivation area to 22 million hectares along with the development of a vast irrigation network of large storage reservoirs, barrages, and link canals. The contribution of the manufacturing sector in GDP was negligible at the time of independence, however overtime the country has achieved great progress. Manufacturing production index that was 100 in 1947 is now more than 12,000. Pakistani industries now produce consumer as well as industrial raw materials and capital goods. Consequently, Pakistan which used to export only agricultural raw materials in 1947, now has 85% of exports consisting of manufactured and semi-manufactured products.

During the early years of 2000s, Pakistan introduced many economic reforms to put economy on a higher growth path. As a result, economic growth accelerated to 7%, especially during 2003-04 and 2007-08, this was mainly due to unprecedented growth in the services sector. This resilience led to a change in the image of the country despite adverse security conditions. This growth enabled the country to create more jobs and resulted into reduction in poverty. Per capita income that was less than $100 in 1947 has now increased to $1380. This is an indication of improvement in well-being. Despite all odds, Pakistan has made an impressive progress. Nevertheless, the achievements remain far less than its real potential mainly because Pakistan has neglected development of its human resources. The poor cohort still does not have adequate access to education and health facilities. As a result, Pakistan missed opportunities to grow faster and become a modern economy. Since independence, Pakistan has accumulated about $60.9 billion of foreign debt (disbursed and undisbursed); local debt is in addition to it and is larger. Consequently, the country is spending over 38% of its current budget on servicing debt, which is more than the total development budget. This leaves meagre resources for human development.

What lessons can be learnt from the past experience in reforming the Pakistan economy? Pakistani planners experimented with policies of central planning, nationalization, regulation, liberalization, deregulation and privatization. From these policies major lessons are: central planning has been a failure as it led to low productivity and low investment in human resources. Government officials cannot efficiently allocate resources as markets do. Licensing system promotes rent-seeking behaviour, which benefits license holders at the cost of domestic consumers. State-owned enterprises (SOEs) owing to inefficiency, waste and corruption hurt the economy. Import substitution industrialization though protects domestic industries against foreign competition but adversely affect consumers in terms of higher prices and poor quality for goods produced by protected industries. Over regulations and controls of the private sector increases the cost of doing business. Creation of oligopolies retard growth and raise prices.

High tax rates on individuals and corporates led to wide spread tax evasion; consequently government too often misses tax-revenue targets. State-owned banks and financial institutions were used to provide concessional loans to political favourites, which retarded economic growth. Capital-intensive industrialization could not generate sufficient jobs for the growing population. Administered prices of key commodities and utilities disproportionately benefited rich classes and created their shortages, which hit the poor hardest by denying them their access. Subsidized agricultural inputs benefit large farmers who afford to buy them, while small farmers, due to lack of sufficient money to buy them, do not benefit from subsidized inputs. Foreign investment mostly came in import-competing industries that were heavily protected. No effort was made to attract FDI in export-oriented industries.

Thus, what should be the thrust of our future policies? First and foremost, outward-looking strategy that promotes exports and integrates Pakistan into the world economy; it would improve competitiveness and accelerate economic growth on a fast track. Second, prices give correct signals to market players but if they are distorted via government bad policies and market failures then wrong mix of industries is selected resulting into slow growth and high unemployment. Therefore, distortions need to be removed by taking right policy measures; the best policy is to allow the economy to work through market forces with meticulous government oversight to check market failures. Monopolies or oligopolies should be regulated by independent bodies.

The role of the State should be limited to facilitating the private sector and provide security and independent disputes settlement system, building cost-effective efficient infrastructures, developing quality human resources, maintaining sound enabling macroeconomic, and paying full attention for the welfare of the citizens. State-owned enterprises should be run on commercial basis. Foreign investors should be attracted to export-oriented industries while ensuring they transfer the technology. Strength of the Pakistani society is its resilience, which has persistently strived to make the country recover and become stronger. This must persevere in the future. Pakistan is currently going through very hard times of its history. If history stands corrected, Pakistan will In sha Allah come out of the current prolonged impasse and continue its journey towards realizing the goals of a progressive, prosperous and modern economy, which was cherished by the Great Leader.

The writer is a Professor of Economics at School of Social Sciences & Humanities at NUST, Islamabad This email address is being protected from spambots. You need JavaScript enabled to view it.
 

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