KARACHI: Compared to the established mainstream political parties, the PPP and the PML-N, the emerging PTI powerhouse seem to have provided details about its targets and strategies manage the national economy, if elected.

The former two have emphasised on areas that have indirect but significant linkages with economic growth, like, for instance, law and order, terrorism, police reforms, accountability, corruption, etc. The economy, as an independent area of concern, comes later in their respective manifestos.

The PPP, which created history in terms of borrowings that widened the fiscal deficit to 8.4 per cent of GDP in FY12, has promised to reduce the gap, if re-elected.

The PPP manifesto has claimed that despite the fiscal squeeze resulting from external pressures and global recession, it attracted record overseas remittances and cut the fiscal deficit from 7.6 per cent of the GDP in 2008 to 6.6 per cent in 2013, a record, which it believes, compares favourably with many bigger economies.

“We will reduce government borrowing, and work on a balanced monetary and fiscal policy. We will lower the budgetary deficit to less than four per cent of the GDP by 2017 and aim to keep our total debt within 60 per cent of the GDP. Our revised fiscal policy will provide the required revenue to enable us to achieve our monetary objectives,” says the manifesto which would apparently struggle to find many takers.

In its manifesto, the PML-N has also promised to bring down the fiscal deficit but the promise is not backed by any serious strategy. The plan to cut the deficit — eliminating the VIP culture and launching an austerity drive – does not address the equally key issue of revenue generation.

In FY12, the deficit was Rs1.761 trillion (8.5 per cent of the GDP).

Is it possible to meet this huge deficit through the measures suggested by the PML(N)? The party simply says it expects the provinces to support its austerity measures.

On its part, the PTI has provided a detailed restructuring plan for the economy, but has given little attention to fiscal deficit.

“The current fiscal policy structure is unjust in the sense that the poor are subsidising the rich by carrying a much larger responsibility of tax payments through indirect taxation. The tax structure shall be made more equitable,” it says.