Article Type

Article

Description

Economically successful developing countries have evolved a new pattern of mutually beneficial and socially productive partnership between the Government and the private sector. In Pakistan, on the other hand, we are still clinging to an outdated, obsolete and highly damaging (from the societal viewpoint) mode of public-private interactions. There is a growing skepticism that the economic packages announced in the last few months in good faith and sensible in their overall thrust will fail to bring about the desired results because of the apathy of the private sector. But it is the longer term effects of the current pattern ofthe relationship that are even more pernicious. There are at least four broad trends that necessitate a fundamental rethinking on both sides, in the structure of relationship between the Government and the private sector in Pakistan. First, there seems a consensus that the Government should withdraw from production, trading and distribution and divest itself of public enterprises that are active in these fields. Privatization has been pursued by both the PPP and PML governments. Second, it is widely recognized that, unless exports are expanded significantly, Pakistan's balance of payments, debt situation and foreign exchange reserves will continue to remain in a precarious state. Third, the current state of public finances, and particularly the public sector deficit, has become unsustainable and radical measures are needed to put it on a sound footing. Finally, the global competition for foreign capital flows, international trade, technology transfers has become fierce and is likely to become even more intense as more and more developing countries choose to integrate in the world economy. Pakistan has to become competitive to participate in the benefits of globalization

Publication Source

Dawn

Publication Date

6-21-1997

Pages

1-10

Notes

IH0166

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