Beyond CPEC: An Agenda for Competitiveness & Structural Reforms in Pakistan Greatful to Dr. Zeeshan, honor to present at KSBL,
Pakistan's Agenda for Economic Reforms - Oxford University Press Background CPEC provides a new narrative for Pakistan’s economy However, the infrastructure endowments under CPEC are not new American’s gave us these endowments in the 1950s and 60s Public infrastructure during 1970s-90s was weakly managed along with lack of accountability Key argument is that we do not use assets optimally for the growth of our private sector and regional trade integration. 2 Pakistan's Agenda for Economic Reforms - Oxford University Press
Pakistan's Agenda for Economic Reforms - Oxford University Press Background-II Thinking beyond CPEC: The dividends from infrastructure development under China-Pakistan Economic Corridor program will remain unrealized if Pakistan does not move towards expediting macro-level reforms that reduce cost of doing business for private enterprise These (dividends) are not offered to neighbors through reduced costs of trade & investment. Need for structural reforms: Some pending structural reforms in the areas of economic governance, trade competitiveness and energy are the key to growth and sustainability of private enterprises in Pakistan. 3 Pakistan's Agenda for Economic Reforms - Oxford University Press
Pakistan's Agenda for Economic Reforms - Oxford University Press Growth & Governance First, weak rule of law hampers long term economic growth prospects Second, delays in legal and judicial reforms accentuate governance challenges, in turn threatening sustainability of growth Third, lack of public administration reforms decreases efficiency and effectiveness of taxation and public expenditure Fourth, corruption in institutions of economic governance affects businesses and ultimately government revenues. 4 Pakistan's Agenda for Economic Reforms - Oxford University Press
Pakistan's Agenda for Economic Reforms - Oxford University Press Source: Worldwide Governance Indicators, www.govindicators.org Pakistan's Agenda for Economic Reforms - Oxford University Press
Pakistan's Agenda for Economic Reforms - Oxford University Press Source: Worldwide Governance Indicators, www.govindicators.org Pakistan's Agenda for Economic Reforms - Oxford University Press
Institutions for Economic Governance Institutional review: Ministry of Finance, Ministry of Planning, Development and Reform (MoPDR), Ministry of Commerce (MoC) and Federal Board of Revenue Cross-cutting issues: Human resource management in public sector Need for accounting systems that minimise wastages and leakages in expenditures Need to shed non-essential tasks. 7 Pakistan's Agenda for Economic Reforms - Oxford University Press
Federal economic governance – back to the basics Parliament Standing Committees CCI Prime Minister’s Office Planning Commission Federal Economic Ministries Federal Board of Revenue State Bank of Pakistan Chief Minister’s Office Provincial Economic Departments 8 Pakistan's Agenda for Economic Reforms - Oxford University Press
Public Accountability Institutions Public Accountability Bodies Public Accounts Committee National Accountability Bureau Federal Bodies Prime Minister’s Inspection Commission Parliamentary Committees Federal Ombudsman Federal Investigation Agency Provincial Bodies Chief Minister’s Inspection Units Provincial Parliamentary Committees Provincial Ombudsman 9 Pakistan's Agenda for Economic Reforms - Oxford University Press
Regulatory arrangements Economic Regulatory framework Sectoral Regulators NEPRA OGRA PTA PPRA Other bodies Corporate Regulation SECP CCP Financial Regulation SBP Provincial Oversight CM Inspection Units Agriculture Market Committees Price Control Committees Industrial Relations Commission Business Courts Banking courts Consumer courts Commercial courts 10 Pakistan's Agenda for Economic Reforms - Oxford University Press
Key argument: disconnect between executive, regulatory & accountability institutions Executive office Regulatory bodies Accountability institutions Pakistan's Agenda for Economic Reforms - Oxford University Press
Case Study-1: Tax Regime in Pakistan Tax Policy Federal Provincial Tax Administration Sub-provincial 12 Pakistan's Agenda for Economic Reforms - Oxford University Press
Case Study-2: Energy Sector in Pakistan Despite improvements in generation, transmission & distribution gaps persist GENCOs and DISCOs unable to recover their full economic costs Hidden & cross subsidies give rise to inefficiencies Technical losses and theft 13 Pakistan's Agenda for Economic Reforms - Oxford University Press
Case Study-3: Public Expenditure Management Parliament CCI Cabinet Committees NEC ECNEC CDWP PDWP DDSC DDWP-II DDC DDWP APCC Priorities Committee NFC ECC Monetary & Fiscal Policy Coordination Board Federal Committee on Agriculture National Price Monitoring Committee Provincial Assembly CM Secretariat PFC Prioritization review ADP Formulation 14 Pakistan's Agenda for Economic Reforms - Oxford University Press
Case Study-4: Implementing Trade Policy Ministry of Commerce Trade Development Authority of Pakistan Ministry of Finance Federal Board of Revenue State Bank of Pakistan Ministry of Industries Engineering Development Board Ministry of Textiles 15 Pakistan's Agenda for Economic Reforms - Oxford University Press
Pakistan's Agenda for Economic Reforms - Oxford University Press Logistics performance scores given in data labels range between 1 to 5; very low = 1, and very high = 5 Source: World Development Indicators, 2016 Pakistan's Agenda for Economic Reforms - Oxford University Press
Pakistan's Agenda for Economic Reforms - Oxford University Press Approach to reform 1. Structural reforms that reduce cost of doing business Taxation Energy Trade Policy Labour Market 2. Finding new levers for growth Trade in services Helping SMEs graduate Investment diplomacy Brand ‘Made in Pakistan’ Transit services for trade & energy Social enterprises Women entrepreneurship Creative industries Reform urban zoning Judicial reforms for business 17 Pakistan's Agenda for Economic Reforms - Oxford University Press
Pakistan's Agenda for Economic Reforms - Oxford University Press Who will do this? How? Pakistan's Agenda for Economic Reforms - Oxford University Press
Pakistan's Agenda for Economic Reforms - Oxford University Press Who will do this? How? Pakistan's Agenda for Economic Reforms - Oxford University Press
Social accountability instruments Policy engagement methods Who will do this? Social accountability instruments Policy engagement methods PBC not given appointment for three years. 20 Pakistan's Agenda for Economic Reforms - Oxford University Press
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