Analysis: Self-inflicted economic crisis

Enough has been said, written and read about the problems in the country. The blueprints are elementary in developmental economics textbooks. It doesn’t require rocket science knowledge to uplift a debt-stricken country with a GDP per capita of $1,700 to a more respectable $3,000 per capita. While the economic solutions are plenty and multi-pronged but require political will and resolve. Hence, the much-needed economic turnaround has been delayed repeatedly. Policymakers — politicians and bureaucracy — have been catering to their self-interests, playing to the gallery and are bereft of novel economic ideas. Someone has to communicate that 1980s policies of basic infrastructure needs would not set the platform for high growth in the 2020s. There are several elephants in the room. Firstly, the gas and energy sector. Power generation needs to avoid imported fuel at all costs. Import bill fluctuation, stemming from volatile oil and LNG prices, creates an unsustainable balance of payment crises for Pakistan. The focus needs to entirely shift towards low variable costs generators, such as nuclear, hydel, Thar coal, solar and wind. Indigenous Thar reserves are a mega powerhouse and a success story with tremendous economies of scale and deceleration of input costs.