Planning and Implementation

Planning Commission aims to make plans for the economic prosperity of the country. Recently Chief Minister called All Parties conference, which is aimed to formulate the long term and medium term plans so that will enable the economy on a fast track growth trajectory.

The Planning Commission’s plans needs disbursements from the Ministry of Finance for their implementation. However these disbursements have not been received in the past except for some specific projects on the grounds that funds in the treasury are insufficient to meet the plan targets. Ministry of Finance has the logic behind its decisions to blame the poor performance of the PPP-led coalition government for the last five years. Thus whichever the plans made by the Planning Commission may or may not be supported by the Ministry of Finance, which is in fact the waste of time.  To me this seems the waste of resources, because Planning Commission makes plans from time to time in order to expedite economic growth.

In Pakistan it is a common practice that government of the time always blame the last governments for the poor economic performance, and it is the same thing with current government. Pakistan is currently facing a higher fiscal deficit, high inflation, and a higher unemployment. Moreover it is also facing a large volume of debt which is rolling over persistently due to which there is a borrowing constraint. There remain no other option to finance its expenditure; however the financing of the expenditures through the seinorage (printing of money) will also create stagflation in the country which already prevails in the economy.

The economy is stuck at a stage where there seems no expectation of the rival; the government should call upon some of the notable economists to get out of this dilemma who would suggest some realistic approaches for the implementation of the plans made by Planning Commission so as to curb the wastage of resources and for the economic prosperity of our homeland in particular. 


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One response to “Planning and Implementation

  1. however the financing of the expenditures through the seinorage (printing of money) will also create stagflation in the country which already prevails in the economy.

    There is indeed a danger of structural inflation finding a way into an economy that relies too heavily on monetary stimulus.

    That is why monetarism needs to be returned to its rightful position as the servant of fiscalism, not it’s master.

    If you just throw extra money into the economy – either by printing cash or loosening credit – then let your already imbalanced economy decide where that money should go you are at high risk of serious inflation. If the economy is stagnating and you just got your hands on some capital, why would you invest in venture projects that could be dragged down by the failing economy? Better for you to invest speculatively. Better yet to invest in a healthier economy than your own. Not so good for the local economy though.

    The Pakistan government probably should be printing money right now, but it should be controlling the initial investment of the money it so creates. All Parties conferences and Planning Commissions should be about deciding where that money might be spent that most benefits the economy of the nation rather than the profits of private investors.