To do list on the Pakistan economy for PTI

Abstract

Abctract. The paper explains the unpopular decisions taken by the finance ministry when it approaches international lenders for managing national accounts by providing the case of PTI in its first 100 days in government. PTI has traditionally been vocal critique of IMF loans but had little option other than to approach the lender of last resort. The case study provides the rational for economic management that happens on day to day basis and the long term development goals that may be strengthened by keeping national accounts in balance through lending. Over the years, democracy and rule of law has strengthened in Pakistan, but the economic issues faced by majority population remain the same. The paper suggests that economic freedom is a necessary choice for a country to bring innovation to local production profile. There is a need to develop motivations through research and advocacy in the country so that a path to freer and prosperous markets are charted out that can then lift millions above poverty line through higher economic output. In short legal and democratic institutions are necessary for Pakistan’s progress but they are not a sufficient condition and may binge in absence of thriving private sector. Currently government of Pakistan is planning to implement post infrastructure CPEC projects. This paper gives a comprehensive guideline to implement CPEC projects especially that relate to Special Economic Zones through developing local industrial clusters while also developing human capital by investing in technical training of populations that reside in peripheries of these Economic Zones. This way Pakistan can become part of Chinese value chain much like Vietnam and new era of local innovation takes place.

Keywords. PTI, Economic zones, Pakistan’s progress, IMF and Pakistan.

JEL. F10, F11, F13.