Tarin's performance: rejoinder

Apropos Anjum Ibrahim's Op-ed titled "Tarin's performance: good, bad or indifferent?" in Business Recorder of January 4, 2010 reflecting on the performance of the incumbent Finance Minister comes just days after the signing of the historic 7th NFC Award - only the fourth successfully concluded in Pakistan's history and the 1st in 19 years - which has been credited on record by the Chief Ministers of all four provinces to the efforts, the single-minded focus and the tact of the Chairman, the federal Finance Minister.
A successful conclusion of the NFC would not have been possible without the confidence and the trust reposed by the highest political leadership in the Finance Minister to take the bold steps and initiatives needed to win over the smaller provinces, and to gain Punjab's acceptance.
The effort by the Op-ed writer to belittle the accomplishment of the historic NFC agreement reflects the limited understanding of the complexities of the subject on which she has chosen to comment, or a lack of objectivity unbecoming of an Op-ed commentator. The writer has also chosen to attribute the visible success of Pakistan's macroeconomic stabilisation efforts over the past eighteen months to adherence to "dictates" of the IMF.
A more objective and careful analysis would have led the writer to review the current government's Nine Point Plan crafted by the current Finance Minister and the Economic Advisory Council of the Prime Minister in June 2008, five months before Pakistan entered the IMF program.
The central tenets of the program are the restoration of macroeconomic stability via a broad-basing of the tax base and a rationalisation of the subsidy regime, promoting international competitiveness in Pakistan's industry as well as agriculture, providing a long term resolution of Pakistan's energy needs, among others.
In line with this economic vision, the Ministry of Finance has set a target of turning around the tax-to-GDP ratio from the abysmal 8.9% it inherited from the previous government, to 13.9% by 2012/13. This is being done via a far reaching program of reform of tax policy as well as tax administration in which the introduction of a broad-based VAT is one important, but not the only, element.
In addition to these measures, a comprehensive tax enforcement and audit plan has been prepared and is already under implementation. While structural measures by definition yield results over several years, a fact which the writer appears oblivious to, the tax reform measures are already meeting with initial success. This is evidenced by the fact that amid a deep economic slowdown both in Pakistan and in the global economy, and in the midst of bearing the full brunt of the war on terror, FBR's net revenue collection for the fiscal year to date is up over 7 percent.
Incidentally, if a Finance Minister's job is restricted to faithfully implementing IMF programs, Pakistan would not have been virtually the only country out of twenty currently in a Stand-By Arrangement with the Fund, that would have been on course. Unlike Pakistan, almost all other countries are encountering difficulties in staying the course on their macroeconomic stabilisation programmes.
Implementing an economic reform program in the best of times requires vision and courage of conviction. Charting a course for the economy while the country is fighting a full fledged war within its borders and caring for millions of internally displaced citizens, in the midst of a global/economic crisis of unprecedented proportions for over 60 years, requires foresight and determination.
Indeed, a better understanding of Pakistan's economic environment and the complex nature of structural issues confronting the economy due to policy inaction over decades would have provided readers a more balanced, objective and informed piece of writing, in keeping with the traditions of the newspaper.
In passing, and for the record, the article in question mentions the supposed lack of progress on implementation of the recommendations of the austerity plan proposed by a committee set up by the Prime Minister and headed by the Finance Minister even after "six months into the current fiscal year". The factual position is that the committee concluded its work on November 7, and presented its recommendations to the Prime Minister on December 16, 2009.