BUSINESSMEN and legislators are hardly aware of the policy papers that set the country’s economic policy direction. The federal cabinet has approved three such documents since 2009. However, no one knows how much they complemented or contradicted each other.

The Economic Coordination Committee of the Cabinet (ECC) and the cabinet under the stewardship of PM Yousuf Raza Gilani adopted the nine-point economic strategy projected as ‘Stabilisation with a Human Face’ in 2008, ‘Medium-term Development Framework 2010-15 in 2009 and the ‘Pakistan’s New Growth Strategy’ in 2011.

“It is ironical that the ECC and the cabinet approved the three different policy papers in a short span of four years. Why did they not infer on reasons or the necessity of the change? Your guess is as good as mine,” a senior source in Islamabad told Dawn last week.

“Having an opinion is the next step, many members of ECC and the cabinet did not even read what they approved,” he added. “Expecting legislators to know any better is unrealistic,” a lady member of the highest policy forum said.

“No, most legislators do not know about guiding economic policy documents. They are too preoccupied attending to problems of their constituencies to spare a thought for a bigger picture. They trust their party leaders with policy matters,” commented a vocal leader of the ruling party over telephone, not even pretending to know the answer of the question regarding economic policy direction put to her.

Officials of the Federation of Pakistan Chamber of Commerce and Industry, Karachi, Lahore, and Islamabad chambers, Overseas Investors Chamber, American Business Council and trade bodies of key sectors such as textiles, fertiliser, pharmaceutical and cement were as ignorant about the policy documents as the politicians.

“How can you expect public participation in a debate over the economic policy options when the process has yet to grab the attention of comparatively more active educated segments in our society?,” commented a senior economist in Islamabad.

“The quality of interest of the society in policy options raised questions about the utility of such costly exercises. I am not sure if the input in terms of man-hours and precious resources committed in developing these policy documents are justified in our conditions. Why invest in voluminous editions when no one has time or inclination to even read them?” another frustrated economist commented.

The first economic policy document ‘nine-point plan’ developed by the Panel of Economists headed by Dr Hafiz Pasha reinvented the stabilisation strategy that advocates replacement of costly public subsidies by targeted direct compensation for the vulnerable segments of population.

It aimed, as the name of the document ‘Stabilisation with a Human Face’ suggests, at reducing fiscal deficit by chopping public expenditure, slashing food and fuel subsidies and improving revenue generation by eliminating tax exemptions.

It also aspired to protect the poor through direct cash transfers under Benazir Income Support Programme.

The first two budgets (2008-09, 2009-10) of the democratic government presented by the second and third finance ministers Naveed Qamar and Shaukat Tareen of the Gilani government were inspired by the nine-points home grown economic road map. The strategy, however, gained more currency during Shaukat Tareen’s tenure from October 2008 to February 2010. He did try to implement the nine points in letter and sprit.

“I told Shaukat Tarin to educate legislators on the economy. I once suggested that laminated flash cards of nine points need to be distributed among legislators to have them some idea about how the government intends to revive the economy,” a CEO of a multinational said in a candid discussion over the issue.

The gentleman was disappointed with the PPP government for not valuing the services of Tareen who being a successful banker himself had a first-hand knowledge of economy and had better chances of delivering than many others.

“My hopes dashed with sudden exit of Shaukat Tareen,” he said grudgingly.

After Shaukat Tareen quit, a new framework of economic revival developed in June 2009 by the Planning Commission under Deputy Chairman Sardar Asef Ahmed Ali was tabled and approved by the highest economic decision making bodies. It was named, ‘The New Vision for Pakistan, Investing in People’. It advocated inclusive development and change in structure, composition and drivers of economic growth.

The government in 2010 directed the Commission to make 10th Five Year plan in its light.

However, the document was forgotten when in 2011 Dr Nadeemul Haq presented ‘growth strategy’ that was also vetted by the Economic Coordination Committee and approved by the cabinet without much ado.

“The fact that the powerful federal ministry of finance is calling the shots and the legislators representing multitude in the parliament are neither aware, nor too concerned about any of the policy document sets the stage for the economic mess the country finds itself in,” said an analyst critical of the well-worded growth strategy. He said the document has no ownership as stakeholders were not involved in its making.

“The series of unfortunate incidents of terrorist attacks, foreign policy glitches and now judicial activism keeps the government on tenterhooks and the public opinion captivated. The biggest challenge is to bring the economic issues in the public discourse. The quality of life for ordinary citizen would only improve when the policymaking is democratised and public pressure mounts to do what best serves the interest of the majority,” concluded a political economist.