EDITORIAL: Prime Minister Imran Khan has decided to constitute an economic outreach apex committee under the chairmanship of his Special Assistant on National Security Division and Strategic Policy Planning Moeed Yousaf whose academic credentials (Masters and PhD from Boston University) and work experience (fellow at the Frederick S. Pardee Centre at the Pardee School of Global Studies at Boston University, and concurrently a research fellow at the Mossavar-Rahmani Centre at Harvard Kennedy School) are quite impressive.
Be that as it may, the PTI administration launched an extremely successful economic diplomacy initiative soon after it took over power in the last week of August 2018. Within the span of less than six months the country hosted the heads of government of two major oil rich Middle Eastern countries notably Sheikh Mohammad bin Zayed of the United Arab Emirates on 6 January 2019 and Prince Mohammad bin Salman of Saudi Arabia on 18 February 2019. The two countries pledged a loan of 6 billion dollars (3 billion dollars each) as balance of payment support for one year with Saudi Arabia agreeing to another 3.2 billion dollars deferred oil facility for a period of three years. In addition, the Saudi Crown Prince pledged 20 billion dollars investment with 8 billion dollars for the construction of an oil refinery on Gwadar Port, the reported jewel in the crown of the China Pakistan Economic Corridor, while the UAE also pledged a significant investment in the country.
The International Monetary Fund (IMF) noted in its July 2019 document titled request for an extended arrangement under the extended fund facility that “the authorities have already secured the full financing for the first year and have received firm commitments by key bilateral partners to maintain their exposure throughout the programme period, including by extending new loans consistent with programme objectives.” By late 2019 reports indicated that the UAE had parked only one billion instead of the 3 billion pledged while Saudi Arabia requested the return of one billion dollars, a shortfall with respect to the IMF that was promptly met by China, while the deferred oil facility has not been renewed yet. China has emerged as the key player in Pakistan’s economic development, and under the CPEC its role has become all the more critical.
Geopolitical considerations and our Middle East partners’ support/investment decisions are understandably guided by their serious security concerns, which are no doubt understood by Moeed Yousaf but which would require major policy decisions/adjustments well beyond his level of decision making. The government can replicate its success in late 2018 early 2019 through a proactive initiative by the country’s top civilian and military leadership.
While chairing a meeting on agricultural reforms, the Prime Minister Khan sought a short-, medium- and long-term action plan that would enhance productivity. Pakistan’s small and subsistence farmers continue to this day to engage in medieval farming methods with a yield per hectare well below that of rich landlords bringing the national average down to the lowest in the region. Overuse of chemical fertilizers and pesticides has depleted the nutrient value of the soil and there is an urgent need to resolve all associated issues. Water scarcity is yet another impediment to farm output and disturbingly use of modern techniques to enhance output in spite of water shortages, like drip irrigation, is not being widely used.
Noted agriculturist and politician Jehangir Tareen’s departure may have left a vacuum in this sector within the PTI administration as he was the go-to man to raise farm output, however, one would assume that there are many studies by international and domestic consultants on how to resolve the issues facing the farm sector, as there are in other sectors, but which are gathering dust in relevant ministries as they have not been implemented by successive administrations. The Prime Minister would be well advised to direct the relevant officials to make appropriate recommendations based on these reports.
Copyright Business Recorder, 2020