PART-IV international donors to put the economy

PART-IV

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4.           
The single most important
factor influencing national security and sovereignty of a country is its
economy. Lack of financial discipline, corruption, lavish expenditure for
political and selfish motives, absence of professional economy managers and
lack of healthy economic policies have brought the country to the brink of
bankruptcy. Such an economic situation has left the country almost defenseless
against the ever flourishing India.

a.           
National
Strategy

(1)         
Elite of Pakistan should
stand as one and transform themselves            under
the Quaid-e-Azam’s guiding philosophy of unity, faith and            discipline.

(2)         
Media should be revitalized
and allowed to play the role of a            watch
dog by non-interference of the government.

(3)         
National consensus should be
built up by educating the masses            through
media on economic and national issues like Kala Bagh      Dam

(4)         
Enforce national service in
all the facets of national    development,
thus making defense responsibility of the entire       nation.

(5)         
The government must do all
it can to make use of the limited            breathing
period provided by the bailout plan offered by the            international donors to put the economy on sound footing.

(6)         
The police force must be
restructured to make it effective,      honest
and free of political influences.

(7)         
All the efforts of the
economic managers should be free from            any
political influence and directed at taking new initiatives and             improving the quality of management.

b.           
Business
Sector

(1)         
Private sector should be
encouraged by reducing official controls and eliminating bureaucratic channels.

(2)         
The process of documenting the economy
started by the present government should be completed and the data collected
should be used in implementing the justified tax system.

(3)         
Emphasis should be laid on the consistency of
policies introduced by the government.

(4)         
Strict measures should be taken to stop
smuggling as it is damaging our domestic industry and the loss to the
government in the form of duties and customs is immense.

(5)         
Developing “Industrial Zones”, keeping in
mind the availability of human and physical resources.

(6)         
Special relief packages for the sick industry
like textile. Also giving boost to sectors like information technology, which
have a great potential to increase exports.

(7)         
To boost exports, excise duty exemptions and
substantial cuts in duties is required.

(8)         
To remove the grievances and hurdles of the
private sector, there is a need of frequent meetings between its
representatives and the government, which will certainly help understand each
other’s view point and come up with a mutually beneficial solution of any
hurdle.

 

c.           
Banking
Sector.

(1)         
Budgetary support to the banks for improving
management and efficiency.

(2)         
Banks should be allowed to close unprofitable
branches, other than those in the rural sector, which will improve their cash
flows.

(3)         
Lending norms be more liberalized.

(4)         
Recovery of defaulted loans to be carried out
by Special Recovery Tribunal.

(5)         
Special laws be made like no one can freeze
the foreign currency private accounts, which will improve the confidence of the
foreign as well as the domestic investor.

d.           
Information
Technology Sector.

(1)         
National Strategy for a period of 5-10 years
to be chalked out and systematic steps be taken to achieve those goals.

(2)         
Government should give tax rebates to
encourage private investors in this field.

(3)         
As per the requirement of the foreign
investors special copy right laws should be made. 

(4)         
Special privileges should be given to foreign
investors in this field, which help in transfer of technology.

(5)         
Excise and custom duties should be reduced to
bare minimum.

(6)         
Infrastructure facilities should be provided
at lower costs.

 

 

 

e.           
Agriculture
Sector.

(1)         
Instead of giving loans, services of
agriculture experts should be provided to the farmers so that they can change
their age-old methods.

(2)         
Developing a “Community Culture” in which a
group of people hires the services of machinery like harvester, thresher etc.
It will increase productivity while keeping the cost checked.

(3)         
Encouraging the farmers to cultivate cash
crops like potatoes and canola. Such yields can be stored, reprocessed and
exported.

(4)         
Packaging plants should be encouraged near
the fruit farms so that wastage is kept at its minimum.

(5)         
Agriculture should be taxed so that the amount
generated is spend on its development.

f.            
Mobilization
of Savings and Investment.

(1)         
The low income growth rate, high inflation
and lavish consumption patterns have dramatically reduced the household sector
savings. Strict implementation of decisions like ban on food on weddings, dowry
will tremendously improve the situation.

(2)         
The real rate of returns should be increased
which will have a pronounced effect on household saving which is the most
important component of national savings.

(3)         
Another drawback of reducing rate of return
is that it will lead to emergence of a parallel unorganised banking system
which will swallow up the savings of innocent people.

(4)         
In Pakistan, unequal distribution of credit
has exercised an inhibiting effect on the process of savings and investment.

(5)         
The confidence of a medium and small investor
should be improved by giving them easy access to the credit and reducing the
paper work.

(6)         
Indigenous investors should come out first
with renewed courage and motivation to bring about a desired level of
investment.

g.           
Armed
Forces.

(1)         
Bare minimum conventional armed forces with
technological edge coupled with a credible nuclear deterrence should be
maintained.

(2)         
Since Pakistan cannot match the overwhelming
strength of India, our economy does not permit a standing army larger than the
existing one, hence we must resort to compulsory military program like that of
Israel.

(3)         
Must maintain and enhance cooperation with
China in all spheres.

(4)         
Take measures to build an effective alternate communication artery to the existing one which runs
close to the Indian territory.

(5)         
The armed forces should carry out a
reappraisal of the internal management of the defense budget by:

(a)    Cutting
down on non-essential expenditure and non-combatant employment. Palatial
buildings, unnecessary paper work, a large contingent of staff officers and
attendants could be done away with.

(b)    Computerization
to replace clerical staff / officers on staff duties is an area worth
consideration.