A broad consensus is required on certain economic (mainly fiscal) policies, especially where constitutional amendments are required, as these are imperative for economic solvency. These are matters where the nod of provinces is needed. Pakistan is a federation and having all federating units on one page on certain policies is the need of the hour.
On top of the list is the NFC (National Finance Commission) award which in current shape and structure is unsustainable, at least in long term. Similarly, there should be a higher number of smaller fiscally independent administrative units. The country cannot run with some provinces which are bigger in size than many countries in the world. Moreover, weightage of inverse population ratio, tax collection, etc by the respective federating units is low as compared to other determinants in NFC.
On taxation, PML-N doesn’t want to tax traders as it might rock its core vote bank. PTI is relying on real estate sector and supports them through construction package and amnesties. All the parties are favouring big agriculturists as landlords are usually election candidates for all parties. These choices remain within the parties. They gain votes by announcing unique economic manifestos. Similarly, broadening the tentacles of tax net is also elusive as evident from the policies of successive governments.
On fiscal side, successive governments always tried to down play the impact of austerity and norm of living according to means. Resultantly, Pakistan has to grapple with the fiscal deficit alongwith mounting current account deficit. So, a concensus among all the stakeholders needed to curb the widening fiscal deficit, by pledging solemn resolves. If all these resolves are backed by legislations by the parliament for short term and longterm goals, governments will not only morally but also legally bound to uphold the terms and conditions of consensus document.
Similarly, a well thought upon export policy coupled with textile, large-scale manufacturing, small and medium size industry, etc needs to be furnished by all the stakeholders including all political parties, business groups, banking companies, and corporate sector, economists and other interested parties.. Both short term and long term goals in the export sector should be given equal priority.
It is high time political parties grew out of their shells of shortsightedness and tunnel vision, and pledge non-partisan commitment to the future generation. The sooner they sit together to reach at a consensus for economic recovery, the better.