Framework for Economic Growth, Pakistan - Planning Commission

International conference on “Framework for Economic Growth, Pakistan”should be defined that which sector wouldplay a role to lead this strategy. If we leaveit open ended the targets would not beachieved unless all the sectors in public andprivate will not work together.Question: Please give some initial comments regarding the FEG. Do you think that it is a newstrategy with the fresh ideas or it is re-hatched?Answer: The FEG is neither a strategy nor aframework. It is a set of new questions andthese are drawn from the new economicliterature emerged in last three decades. Inother words it is a set of rules on the basis ofwhich the economic growth andperformance can be shaped and influenced.The questions which are posed are quite newwhich would open up a new terrain of policyanalysis and actions as a result.We The intellectual challenge in devising a NGS is that we have toidentify the new kind of institutional reforms which require a lot ofnew research, a look at the history of Pakistan, systems ofgovernance, and its institutionsQuestion: Do you agree with the sequencing of the priority areas proposed in the FEG?Answer: The priorities that have beenproposed in NGS are very important. Butthat doesn’t constitute either a framework ora strategy because a strategy requires twokinds of serious efforts viz. to give greaterand concrete approach to improve thequality of life, productivity and liberalizemarkets etc.; and secondly theimplementation mechanism. The intellectualchallenge in devising a NGS is that we haveto identify the new kind of institutionalreforms which require a lot of new research,a look at the history of Pakistan, systems ofgovernance, and its institutions. Whether themarkets work efficiently or inefficientlydepend upon the institutional frameworkwithin which these markets operate. Simplyderegulating the markets is not a good idea.World economic crises happened as themarkets were not self regulating. So we needa regulating mechanism and institutionalframework for markets.The kind of power structure we have inPakistan is that we have a coalition of eliteswhich has the power and strong stake inmaintaining the status quo. Such coalitionshave created institutional structures whichexclude common people from economicgrowth, and restrict open and faircompetition in the country. Opening up themarkets requires engaging power structuresand regulating open and fair competition inthe markets. Fruits of the growth shouldreach not only to the rich but also to peoplein middle and poor class.***114