Daily Times

There cannot be any sovereignty in absence of economic sovereignty. Chief of Army Staff General Qamar Javed Bajwa said recently that in difficult times no individual alone can succeed unless people rise as a nation. “It is time to be a nation, the Army Chief urged as he vowed to overcome economic crisis in the country. General Bajwa endorsed the relationship between security and economy, stating both directly complement each other. He believed that fiscal mismanagement led the country to the prevailing economic situation COAS said the Armed Forces have played their role in improving the economic situation by freezing their annual budget. He cited several examples of other countries which took difficult decisions to come out of economic disasters and hoped the country will soon overcome the economic crisis. He said “countries cannot developindividually, it is the region which develops. For our region to develop, we need to have greater regional connectivity among all neighbours. There was need to discuss ways of overcoming budget deficit, low tax collection base, circular debt, loss-ridden public enterprises, fiscal indiscipline, weak institutional capacity, low exports, meeting federal obligations within existing NFC arrangements, and perceptions surrounding the prevailing economic environment.

PTI’s first budget sailed through National Assembly the opposition protests continued over rejection of its proposals on finance bill. Minister of state for revenue Hammad Azhar said that the incumbent government had given $9.5 billion as payment of previous loans. Hammad Azhar informed that government would increase the tax-to-GDP ratio by four percent in the next three years as it has become imperative to ensure stable national growth.

Budget is much more than balancing the books. It is creating opportunities, reducing poverty, and promoting social and economic mobility for a just society. Rationalize tax system, make it simple and affordable in a friendly mode and positive setting. All measures should lead to higher economic growth and prosperity.

Fiscal discipline is essential to attain economic stabilization. Internal and external turbulence would be the major barriers to Pakistan’s ambitions foreign policy goals. In this context Pakistan looks eager to pursue a policy of détente to normalize its troubled relations with India

Adviser to the Prime Minister on finance said, current account deficit was lowered from $20 Billion to $13.5 Billion. Existing FBR-TAX to GDP MATRIX had low priority for agriculture and high priority for industry. The desired Matrix gave agriculture 19 percent, Industry 21 percent and services 60 percent. The budget indicates some “Naya Pakistan Initiatives” and Austerity measures.

Regarding government’s budget strategy, Hafeez Sheikh said it was part of the agenda to make all things transparent. The government budget strategy is based on five points that include managing external front, strict austerity, social welfare, helping industrialists, and mobilising revenues. Due to current account deficit and foreign loans, the external front was matter of great concern. Soon after coming into power the government took immediate steps to curb external threats. Efforts were made to bring down the current account deficit. Efforts were also made to squeeze imports. The deficit will be further lowered to $7 billion.

Pakistan’s geoeconomics focus, a shift from geopolitics strategy is guided by the changes that are fast happening in the region as well as on the global stage. The perceived security threats from India still continue to exist. However, Pakistan is now fully capable of coping with such conventional threats from position of strength and by itself. Over a period of time Pakistan succeeded in perfectly maintaining the nuclear as well as conventional balance of power vis-à-vis India. Pakistan has achieved self-reliance in military hardwares through an extensive support. There has also expanded the domain of national security. However, without a strong economic base country’s defense base remains a question mark indicating the need to improve national economy on top priority.

Fiscal discipline is essential to attain economic stabilization. Internal and external turbulence would be the major barriers to Pakistan’s ambitions foreign policy goals. In this context Pakistan looks eager to pursue a policy of détente to normalize its troubled relations with India. Pakistan has time and again expressed a desire to make peace with India and to resume the process of dialogue to think together and walk together towards goals that define the destiny of the people of the two neighbouring countries. If there is an environment of peace, prosperity and happiness will arrive in the two estranged countries.

There are common grounds that can bring India and Pakistan together, overriding and pushing differences away. Regional peace and ultimately conflict resolution in the broader global environment needs the cooperation and friendship between Indian and Pakistan. Prime Minister Imran Khan has already expressed his good wishes for Indian Prime Minister on his re-election to the top job. He will be glad to welcome Indian Leadership to Pakistan to open a new chapter of mutual understanding and appreciation for a way forward.

The writer is former Director National Institute of Public Administration (NIPA) Government of Pakistan, a political analyst, a public policy expert, and a published author. His book Post 9/11 Pakistan was published in the United States. His book Existential Question for Pakistan was recently launched and highly recommended as a must read for everyone