'All indicators moving in the right direction'

Apropos a news item carried by this newspaper on its front page on Sunday, it is indeed a matter of grave concern for the export-oriented sectors of the country that the cost of doing business in Pakistan is 10 percent higher than what is in the region. About 20 percent production capacity of industry in the country is impaired due to high cost of doing business. The situation therefore highlights some questions with regard to energy. Will the completion of a slew of power projects under the present government help reduce power tariff for industries as electricity tariff in Pakistan, according to the report, is 11 cents/kWh against 9 cents/kWh in India, 8.5 cents/kWh in China, 7.3 cents/kWh in Bangladesh, 9 cents/kWh in Sri Lanka while 7 cents/kWh in Vietnam? The other key question is in relation to the gas. Will the import of LNG help soften gas rates too as, according to the report, gas tariff is $8/MMBTU in Pakistan against $4.2/MMBTU in India, less than $6/MMBTU in China, $3/MMBTU in Bangladesh and $4.5/MMBTU in Vietnam?
The policymakers who have shown inability to see a bigger picture seem to be least bothered about the fact that further duties/taxes/surcharges on exports in Pakistan are more than 5 percent, however these are less than one percent in China, Bangladesh, Sri Lanka, Vietnam and zero percent in India. Pakistan's share in global textile trade has dropped from 2.23 percent to 1.5 percent during 2005-2015 as the sector remains uncompetitive in the region with low power supply, high cost of doing business and desired relief in taxes. However, India's share increased from 3.5 percent to 5 percent, China's from 30 percent to 38 percent, Bangladesh's from 1.6 percent to 3.7 percent and Vietnam's from 1.12 percent 3.7 percent during this period. The above statistics constitute a sardonic comment on our subsequent governments' priorities although our fiscal and monetary managers derive a perverse satisfaction from the illusion that "all economic indicators are moving in the right direction".