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Dream of economic recovery

Dream of economic recovery

The government ministers are posing rosy picture of the economy, as many indicators are showing signs of recovery, but the country still has to go a long way to achieve macroeconomic stability. The world financial institutions had projected six percent growth in the gross domestic product, but at least 5.6 percent is expected to be achieved during the current fiscal year. The overall economy of Pakistan is not performing well and is continuing to face internal and external challenges. The chaos on the political horizon has adversely affected the pace of development in the various sectors of the economy. The PML-N government under Nawaz Sharif had claimed it will end energy shortage and incessant power supply will be ensured to the industry, but load shedding has again started haunting the industrial sector. Exports have picked up to some extent and it is now up to the government to sustain its policies. There is modest increase in inflation while growing fiscal and current account deficits are appearing as challenges in the coming months. The prime minister has launched tax amnesty scheme to bring the non-filers into the tax net. However, there is no change in standard operating procedure and this could foil all the attempts to regularize the tax system.

The policymakers take the issue of structural reforms as certain steps to enhance the realm of indirect taxes. Otherwise, it is difficult to avoid taxes if bank accounts of every individual are classified and closely monitored. The overall performance of the government remained subdued as it has failed to achieve any of the targets. After assuming the office, the former prime minister had declared that the only motto of his government would be business, business and business. Despite himself as a businessman, Sharif could not make any progress in any sector of the economy and even failed to streamline the administrative affairs. When administration is weak and incapable, no policy can achieve the desired results. The mandate of this government is going to end in a few months, but it is imperative for the mainstream political parties to do some homework before elections. The country needs reforms not only in the administration and management sectors, but also in the departments and provinces. It is hoped the economy would continue to grow at a steady pace and what the government needs to do is to minimize its interference in the businessmen’s affairs. Laws also need to be improved to curtail the powers of official machinery which is the biggest hurdle in the growth of the economy.