Failure not an option

LAHORE: Failure is not an option for the coalition government that must deliver in the limited period at its disposal. The coalition parties would have to adopt policies with consensus.

That task is not as hard as it looks. They simply need to restore the governance bar that had gone awry in the past 44 months. The previous government lost its grip on most of the institutions that were afraid of accountability unleashed on few of them even on prudent decisions taken in the past in public interest and for faster delivery. You must give margin of error on the decisions taken with good intent.

None of the bureaucrats booked by the National Accountability Bureau (NAB) were convicted by the judiciary in those 44 months. This made the bureaucracy dysfunctional as they took months to take decisions that in the past were taken in days. This government must restore their confidence and close the institution of NAB.

The previous regime was serious about controlling prices. It was in its own interest, but it lacked the support of institutions that were instrumental in regulating the prices, arranging supplies in time and dispatching items short in one region from areas where there was oversupply.

They kept an eye on hoarders. That regime paid the price of inexperience and a mindset that considered everyone outside their rank as corrupt and thief. This is the reason that Sindh ruled by the PPP emerged as the growth leader among all provinces. Construction for instance is a major barometer of growth.

Cement uptake in Sindh and Balochistan increased by over 16 percent in the first 10 months of this fiscal (Balochistan share was nominal). Domestic cement uptake in Punjab and Khyber Pakhtunkhwa, both ruled by PTI declined nominally by less than one percent. The major drawback was bad governance.

PPP in the past had never excelled in governance and usually Punjab was considered as the best governed province followed closely by Khyber Pakhtunkhwa. The current regime is very close to a national government minus PTI. Parties in power today have enjoyed power in the past once or several times.

They know the drawbacks of governing in isolation and have forged alliances by giving space to each other. They are in an ideal position to chalk out a common economic agenda. Economy now is not in a manageable mode. The price control mechanism is also not in place. The government should act fast on this front.

There are international arrangements that must be made this month. The International Monetary Fund (IMF) would step in after the presentation of the budget for the next fiscal year. It will approve the tranche if we fulfill its conditions in the next budget or succeed in obtaining some waivers.

Coalition partners must be on board with the economic reforms agenda. Reforms however prudent would be strongly opposed by the lone party in opposition. The government should listen to their point of view and incorporate sensible suggestions.

The agenda must be based on removing all exemptions and waivers of taxes provided to anyone in the government. Instead of targeting the poor through indirect taxes, new taxation policy should target vested interests, rent seekers and tax evaders.