SIFC—a better role

The SIFC was created with a mandate to facilitate much-needed investments from foreign public and private entities into Pakistan. However, the country needs much more.

The SIFC does not address the root cause of the country’s economic ills – the absence of full-scale reform of the governance and economic structures of the country. Hence the mandate of the SIFC should be expanded to include the setting up of a National Reforms Council to define and implement full scale reforms of Pakistan’s economy and governance.

The case for wholesale national reforms of all areas of the economy and governance structures is already well made. To date, no government of any form has been able to conceive a full set of reforms or sustain its implementation.

Any reforms that have taken place have been too meagre or implementation has stalled. Most of these reforms were undertaken due to pressure of external bodies. Whereas the reform agenda belongs to the people of Pakistan, needs to be owned by the people of Pakistan and the responsibility to see it implemented also lies with the people of Pakistan.

The people of Pakistan cannot wait for the governing elites to develop consensus, agree to a charter of economy, etc., and develop the will to transform the economy and governance of the country. The reforms process needs to start now with full seriousness and commitment.

An independent National Reform Council (NRC) should be set up within the ambits of the constitution and in a way that it survives changes in governments. All political parties should be asked by the people of Pakistan to ensure its independence and ability to function without interference or pressure of any kind. Political parties should be judged on their commitment to reforms and their track record on implementing these reforms, when in power.

The NRC will be an asset of the people of Pakistan, who will stand behind it and support its agenda. The NRC will focus on reforming all aspects of the economy to deliver a sustainable, independent and developed economy to the people of Pakistan, so that it is permanently and irreversibly freed from resorting to seeking bailouts and assistance from any international organisation or country. The economy will need to undergo a full-scale redesign and transformation; cosmetic or firefighting measures will not be sufficient.

The NRC will be responsible for improving the performance of all functions of the federal and provincial government vastly, and instilling a culture of merit, high performance and delivery in all such units in a permanent and irreversible manner. The reforms programme must begin with the Civil Service to ensure government departments are discharging their responsibilities and delivering to the people of Pakistan as expected and to high standards.

Budgets, fiscal management, industrialization, management of national debt, controlling inflation, increasing employment, increasing exports, expanding the tax base, reforming pensions, energy sector sustainability, food security, environmental protection, education, local government, judicial, police and health reforms will be within the scope of this organization.

Reforms must change the incentive structure of all the stakeholders so that both the public and private sector is performing and working to build and develop the country. The NRC will launch policies and programmes that will mobilize the whole nation to adopt and practice a higher work ethic for the development of the country’s economy.

Composition of the proposed NRC

The reforms unit will have three facets or capabilities. A) Subject Matter experts, who are able to consult, design and define the technical set of reforms in the given subject area. B) Implementation arm that will be able to roll out the reforms through new laws, procedures and practices, through proper implementation of existing laws, procedures and practices, using coercive, persuasive or incentive measures, track, measure and report on implementation status, remove obstacles and friction points and create team work and coordination mechanisms. C) Political arm that can negotiate changes that require political solutions, debate, persuasion, cost benefit articulation, highlighting of long-term national interest versus short-term interest, emphasis on collective benefit and equitable development, problem solving, negotiations and tradeoffs discussions with stakeholders.

This will also require media support to mobilize every citizen of the country to play their role in the development of Pakistan and take ownership of this endeavor. Transformation of Pakistan’s economy is a national project that must involve and mobilize every citizen in the country; it cannot be top down.

The NRC must be composed of individuals who have a record or desire of selfless service to the country, possessing the required virtues for this task such as integrity, agency, care for all the people of Pakistan and the courage to overcome pressure. They must also have skills such as long-term thinking, technical ability, vision, meticulous planning, analysis, tenacity and problem solving. The unit cannot be staffed with retired bureaucrats.

Copyright Business Recorder, 2024