EDITORIAL

Economic benefits need to trickle down

In spite of all the successes on economic horizon, there remains certain voice of dissent that need to be addressed if the recovery process is to be sustainable in the medium- and long-run. The stabilisation process though pursued vigorously but has pushed the hard-pressed population into the corner where they can hardly afford to remain patient for long. The reform process cannot remain totally oblivious of the popular sentiment, which determine the overall image of the government. That the elected governments are more responsive to such demands will be generally admitted. What is needed therefore is to explore the growth prospects of the economy while stretching the economy to the limit where it could ensure the participation of broader mass of the population. The need for rationality and prudence in economic expansion is however necessary, as the past experience of senseless monetary expansion cannot be supported either. The growth potential should be explored so that the unemployment level can be brought down and the quality of life of the people improved. For there is a solid foundation for undertaking the job of expansion in employment seriously is quite evident and holds the basis in favour of this argument so popular in general public.
There is, however, a general agreement on Pakistan's turning into a success story on the economic front. But these have failed to over-rule completely the voices of dissent, which can be heard quite clearly. Ever donors accept the successful restructuring of our economy, which is poised to claim larger sovereignty in the days to come. The restructuring exercise of the government, particularly in the last three and a half years, is often cited as an example for other developing countries, but its impact on the quality of life of individuals has remained far from being satisfactory. The revival of the economy still remains distant and the spill over effect of economic stability is not seen at the national level. However, there is no denying the fact that the reforms were essential and necessary indeed to keep the economy afloat in the global era of competition. Pakistan, though late in the race, is fast yielding results to make its presence felt at the international level. But, the government has been able to lay only the foundation, while the edifice of the economic structure is yet to be decided.
The unprecedented foreign exchange reserves, in addition to promising performance on the agriculture side, low inflation and renewed rapport with donors, reflect that the spilling over effect of the macroeconomic stability have started yielding results. The government has done away with the policy of issuing SROs, reflect that the economic consistency is being ensured and the days of adhocism are over or atleast there are efforts in this regard. The concerns about the future political shape as a result of tussle on LFO and President's uniform needs to be addressed in an effective way. The political stability is also linked with the fact that the new government take steps when the effects of the macroeconomics improvement is felt by all and sundry. Though there have been various interpretations of the political steps taken by the military government that took over power on October 12, there remains a broad consensus with regard to decision taken to salvage the sinking ship of economy, and as such one could see the continuation of these policies in the days to come.