New economic policy board sparks optimism and skepticism

In an effort to ease private sector, economists and civil society concerns and gain their support in navigating the current challenges, the coalition government has created a new platform for a more inclusive economic planning process. While the business community recognizes the significance of this development, it remains cautiously optimistic given the complexities involved.  

Last week, the government announced the formation of a 25-member Policy Board within the federal ministry of planning, which includes five ex-officio members: the Deputy Chairman Planning Commission (PC), federal secretary of planning, the Chief Economist of PC, Vice Chancellor of Pakistan Institute of Development Economics (PIDE). The remaining members consists of prominent businessmen such as Syed Yawar Ali, Chairman, Nestle, Musadaq Zulqarnain, Chairman, Interloop, Amir Ibrahim, CEO, Jazz, Rehan Sheikh, President, Overseas Chamber of Commerce and Industry (OICCI), Atif Ikram Sheikh, President, Federation of Pakistan Chamber of Commerce and Industry (FPCCI).

The board also includes notable civil society leaders like Adil Najam, President, World Wildlife Foundation (WWF) and Dr Amjad Saqib, President, Akhuwat Foundation (AF). Among the economists Dr Ali Cheema, Dr Nadeem Jawaid and Dr Azam Chaudhry while IT experts such as Naveed Sherwani and Muhammad Zubair Khan are also part of the board. The chairman has the authority to induct additional members. The board is required to meet at least once every three months, according to the relevant notification.

Defending the creation of the new platform, Planning Minster Ahsan Iqbal stated, “The idea is to institutionalize consultation with the private sector, civil society and diaspora on development planning through the establishment of a Policy Board. This will provide breadth of fresh air to us, providing new ideas and suggestions from outside government”.

A businessman nominated to the board felt it was too early to judge the merit or effectiveness of the forum. “I intend to provide honest feedback on policies and offer well-thought-out suggestions”, he said.

Majyd Aziz, a prominent businessman, expressed skepticism. Sharing his views from Geneva he noted: “These policy boards, task forces, economic councils with private sector participation often serve as mere gestures by successive governments to show concern for the private sector. The outcomes of such forums are rarely made public. Bureaucracy frequently erects roadblocks to prevent the approval and implementation of pragmatic proposals from the private sector. Unfortunately, many in private sector join these bodies primarily for networking and to gain access to corridors of power”.

Abdul Aleem, Secretary General, OICCI, sounded hopeful. “The first meeting of the planning board was held last Friday. I attended the meeting along with many other private sector representatives. Some well-respected professionals were also there. Only time will tell how effective this new forum will be in leveraging the expertise and experience of noted national and international experts and stakeholders in making a positive impact on the economic landscape of the country”, he remarked.

“No one had high expectations, as there seems to be little scope for meaningful economic planning in a country often labeled a ‘one-tranche nation’, pushed to the brink of sovereign default and repeatedly pulled back. Despite its immense development potential, basic amenities and even jobs for citizens remain more of a privilege than a right” an expert expressed her apprehension.

“Knee-jerk reactions to internal and external shocks, rather than well-coordinated long-term economic planning, have left indelible marks on Pakistan’s economic history and its erratic trajectory. Key events that have shaped the country’s economic path include the martial laws of 1958, 1979 and 1999; wars with India in 1965, 1971, 1999; the nuclear tests of 1998; the earthquake of 2005; floods in 2019 and 2020; the Korean war (1950-53); the secession of East Pakistan in 1971; the oil crisis of 1973; The Soviet invasion of Afghanistan in 1979; the US invasion of Afghanistan in 2001; the Covid-19 pandemic and the US withdrawal from Afghanistan in 2021”, she added.

Agreeing with her another anonymous expert remarked, “Even today, 23 years later, it is hard to brush aside the horrific memories of this day in 2001 when the world watched live on TV screens as passenger-loaded planes crashed into the Twin Towers in New York, USA. Much has been written about the aftermath, especially for Pakistan after it joined the West in the war on terror. While the rest of the world moved on, Pakistan, its economy and its people are still grappling with the consequences of militancy rooted in Afghan wars”.   

Planning Minister Ahsan Iqbal, who led the ministry multiple times under previous PML-N governments and was a key proponent of several national plans and visions, including creation of important Sustainable Development Goals (SDG) and China Pakistan Economic Corridor (CPEC) cells in the ministry, still believes that a well- devised economic plan with wider ownership can put the economy back on track.