The Prime Minister is set to unveil the “Home-grown Economic Development Plan” today (Wednesday) with 6 percent economic growth.
Sources told ProPakistani that the British economist Professor Stefan Dercon and some Pakistani former civil servants are now working as advisors in different international organizations.
Professor Stefan Dercon in his recommendation states that the government should increase the tax-to-GDP ratio to 13.5 percent per year in the next three years while the New policy unit should be separate from FBR and work closely with the Prime Minister’s Office and the Minister for Finance should lead this unit.
In addition, he recommended Root and branch reform of the FBR for improved tax collection including through intensified digitalisation efforts.
The British economist in its recommendation proposed that the government immediately put the Asaan Karobar Act 2024 into action and implement the Regulatory Guillotine in the Federal Government, aiming to reduce the cost of doing business by up to 3 percent of GDP.
Moreover, he recommended implementing sector-specific investor-friendly policies to simplify procedures, enhance investor confidence, and decrease investor complaints by 25 percent in the next 12 months.
Simplify inspection regimes to bring down their cost and time, regardless of sector and business size besides setting up walk-in and digital Business Facilitation Centres to bring down time to process No Objection Certificates by 50 percent, with 5,000 businesses served within the next 9 months, the plan states.
He also proposed setting up an investment ombudsman to address grievances on fair business practices and bureaucratic hurdles, with 50 disputes settled in the next 12 months
He also proposed that tax collection from retailers, agriculture, and construction/real estate will be commensurate with their share in GDP.
Regarding the Energy and Petroleum sector reform, he proposed creating competitive markets in electricity in which multiple suppliers sell power directly to users, Deregulating the midstream and downstream gas and oil market including through deregulating oil pricing besides facilitating the entry of new players in the gas sales business.
On exports, he proposed that the government should reduce the tariff reduction target (CD+RD+ACD) from 19.56 percent at present to 14.29 percent.
If the measures outlined in this plan are diligently implemented, the country will not only create one million more jobs per year by FY28 but an extra $10 billion in private investment per year by FY28.
These reforms will not just boost the economy by then but also in a way that can grow by 6 or more percent without a balance of payments crisis after the IMF program ends.
This plan will also deliver $60 billion more exports by FY28, and increase the export share in GDP to about 15 percent from about 10 percent currently.
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Abe us British economist ko bolo kae pehlae APNI economy to theek ker lae….
I do agree with all the ideas you have introduced on your post They are very convincing and will definitely work Still the posts are very short for newbies May just you please prolong them a little from subsequent time Thank you for the post
Home grown economic plan = begging imf for loans