Prime Minister Shehbaz Sharif has told the Economic Advisory Council that the government was working to facilitate the private sector to push the economy back on track. At the same time, it was interesting that the EAC meeting, which was attended by members of the Federal Cabinet, did not, according to the release from the PM’s Office, include the Commerce Minister. It would have seemed obvious that the country’s economic conundrum, a shortage of foreign exchange, could only be solved by increasing exports, which is what the Commerce Ministry is supposed to do. Mr Sharif is also supposed to have expressed satisfaction at how the economy was doing. This was probably over-optimistic, or looked at the future to the exclusion of the present, where the big picture still showed an economy mired in stagflation, as the latest meeting of the National Accounts Committee gave a growth figure of 2.4 percent for the ongoing fiscal year, and an inflation figure of 26 percent. The only thing good about the growth figure is that it shows a rebound from the -0.21 percent recorded the previous year, where an actual contraction took place. The PDM government, also headed by Mr Sharif, had projected a 3.5 percent growth target, which was also anaemic. It may be noted that the growth, such as it is, is not based on industrial or services growth, but agriculture. That means it might be at least partially wasted, because of the botched acquisition of an abundant wheat crop. Mr Sharif did tell the EAC that the government would ensure proper seed and fertiliser supply to farmers.
Mr Sharif showed no signs of out-of-the-box thinking, giving weight to the assumption that that is not what his government is supposed to do. He has promised that the tried and tested solutions will be given another whirl. However, he would do well to remember that those solutions have failed. One argument is that previous governments have pursued them half-heartedly. If that is so, then the present government must stay the course, take the pressure, and must do what the private sector wants it not to do: make it pay its fair whack. There has also got to be found a way of making sure that Pakistan finds a way of exporting more, which is the only way it will earn enough to pay its way through the world.
