Missing inter-ministerial coordination

LAHORE: The coordination among various economic ministries is crucial for the successful implementation of announced policies and overall economic governance.

An absence of coordination between Pakistan’s economic ministries is one of the main reasons for failure of our policies. Our planners must realise that economic policies often have interconnected and interdependent effects on different sectors of the economy.

When economic ministries coordinate, they can ensure that policies are aligned and complementary, reducing the risk of contradictory or counterproductive measures.

For instance, the ministry of commerce fixes export targets and offers some incentive to the exporters offering import concessions on imported inputs. The ministry of finance in order to jack up revenues continues to charge normal duties to the dismay of exporters. Or the power ministry subjects industries to load shedding, preferring domestic consumers. This upsets the planned targets of the ministry of commerce. This happens because of the absence of coordination between economic ministries.

Without coordination, different ministries might pursue conflicting objectives, leading to inefficiencies and negative outcomes. For example, if the power ministry supplies power to industries without considering the cost implications, it could create financial burdens that the finance ministry has to address.

Coordination helps optimise the allocation of resources across various sectors. When ministries work together, they can prioritise investments and allocate funds more effectively, leading to better overall economic performance.

When it is otherwise, all economic targets are missed as is happening in Pakistan. Implementation of economic policies often requires collaboration across multiple ministries.

When there’s seamless coordination, it becomes easier to overcome bureaucratic hurdles and execute policies in a timely and efficient manner. In Pakistan, the controls are mostly vested with the Ministry of Finance that mostly ignores other ministries.

Consistency and predictability in economic policies are critical for attracting investments. When different ministries are on the same page, it sends a positive signal to investors, fostering confidence and stability in the business environment.

Coordinated efforts enable ministries to pool their expertise and insights, leading to more robust and well-informed policymaking. This can lead to innovative solutions and better outcomes for the economy.

Economic development plans and goals can only be realised when various ministries work together towards a shared vision.

For instance, achieving sustainable growth may require coordination between the power, finance, and commerce ministries to ensure a balance between industrial needs, environmental concerns, and fiscal sustainability.

It is unfortunate that despite knowing this the planners have not made any effort to ensure coordination between different ministries.

To achieve this objective there is need for effective coordination through an effective institution that facilitates better monitoring and evaluation of policy outcomes. When ministries share data and insights, it becomes easier to assess the impact of policies and make necessary adjustments.

Coordination among economic ministries is vital for the overall economic well-being of a country. It enables efficient resource allocation, minimises conflicts and inefficiencies, and contributes to achieving national economic goals.

Pakistani planners should strive to foster strong communication and collaboration between economic ministries to ensure a cohesive and effective approach to policymaking and implementation.