Economic dilemma

AS the Government is set to announce the budget for the
next financial year, it is facing difficult situation as to
how to revive the economic activity in an environment subdued and suppressed by the fast spread of Covid-19, which understandably is the priority for federal and provincial authorities. This was also noted by the National Economic Council (NEC) which observed on Wednesday that the “upward trajectory of the economy made possible after huge efforts of the present government” had been severely affected by the Covid-19 pandemic.
Despite massive shocks, the economy has shown remarkable resilience and the Government too deserves appreciation for handling the situation with utmost care. No doubt, resource availability is a big issue as before especially due to economic stagnation but the Prime Minister has rightly given directions for prioritising those sectors which promised job opportunities for the youth and the agriculture sector as well as focusing on upgrading the country’s healthcare system. In this regard, the Government had, a few weeks back, announced a comprehensive package for the construction sector but its impact is so far not visible due to some lacunae and oversight in finalizing details. This needs to be reviewed in the light of observations being made by the relevant stakeholders. Pakistan is bestowed with fertile land and has an elaborate irrigation system but regrettably due to lack of proper focus the sector has not been able to contribute to the GDP as per its true potential. It is ironical that an agrarian country could not produce enough wheat this year to feed its population and this calls for thorough review of the situation. It is also perplexing that we fail to procure wheat on officially announced procurement price when farmers work hard and produce more and a significant chunk of the commodity is wasted due to lack of storage facilities. IT and telecom sectors too have the potential to help overcome our economic problems and the issue of unemployment provided they are given due incentives and multitude of taxes is reduced to bearable limits. As for development projects, the government has done well by including only those projects that have already been approved by the relevant forums. In the past, inclusion of projects on political considerations without regard to proper feasibility and viability led to delays in implementation and cost escalation. However, allocations for infrastructure, which can accelerate the pace of economic activities and generate employment opportunities, are not adequate and are unlikely to contribute meaningfully to the cherished goal of revival of economy.