A very bold and courageous reform program. No wonder he had to resign.
I don’t think Pak government has the will and discipline to implement something like this.
Nevertheless, this is what Pakistan needs.
http://www.dawn.com/2011/07/27/agenda-for-reform.html
“To begin with, I would privatise anything and everything in the public sector starting with government-owned banks, simply to protect public money (including depositors’) and ensure the safety, soundness and stability of the financial system.
Just three public-sector enterprises like PIA, Steel Mills and Railways are together losing a crore rupees a minute. The country cannot afford the continued haemorrhaging of public finances and the banking system. There is no option other than privatising these organisations or some of their services. Even when it comes to social services like education, poor households are voting with their feet and sending their children to low-fee-charging private schools, although government schools are free. The lessons from initiatives like the Punjab Education Foundation that private schools provide better quality education at one-seventh the cost in government-managed schools, are clear enough. The state should ensure that children get free education without being in the business of actually providing the service…”
“…However, in my view, the expenditure side in the fiscal equation demands closer attention. To this end we need to first abandon the contorted view of our importance (‘the world cannot ignore us’) because of our strategic location and also dump the old, failed policies, frameworks and concepts of a security state and strategic depth, since these are now costing us more than Rs830bn per annum. Thereafter, there is a need to reassess security-related funding requirements…”
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Next, we need to quickly phase out untargeted subsidies, especially for the farming community in the shape of direct and indirect subsidies on fertiliser (the latter through the under-pricing of gas) and for its wheat purchased at prices higher than in the international market. In fact, I would argue that it would be cheaper for public finances if we were to eliminate both subsidies as against levying GST on fertiliser and pesticides.
As part of the same effort, all subsidies on energy should be withdrawn for those consuming above lifeline rates. The concession of free provision of electricity to Wapda employees which is costing us taxpayers Rs35-40bn per annum, also needs to be withdrawn immediately. All this needs to be followed up by addressing the critical issue of electricity theft and non-collection of billings without disconnecting non-payers, the combined cost of which is in excess of Rs4 crore a minute. Pilferage, however, can only be tackled through privatisation of the management (with agreed targets), if not ownership, of electricity distribution companies. The purported plan of the government to restructure their boards, their membership and authority is not the solution…"
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Next, we need a right-sizing of government, especially at the federal level following the 18th Amendment. Merely surrendering posts as incumbents retire through natural attrition will be too slow a process. The golden handshakes and skill-enhancement efforts to enable this can always be financed.
Finally, apart from greater austerity (surrendering of all VIP planes, stopping the provision of bullet-proof cars to all and sundry, etc) there is a need to reorder our expenditure commitments. It is naïve to think that governments should do everything. Even the richest country in the world has to prioritise its spending to avoid waste of scarce resources by spreading them thinly. And, of course, such reordering is driven by political considerations. But the fact that we have to choose is unavoidable. For instance, it is a no-brainer that availability of reliable power is more important than roads for transportation. Road networks are needed to transport goods but only after they have been produced, which requires power…"