PBC calls for reform-centric qualitative targets

Pakistan Business Council (PBC) has said that the International Monetary Fund’s previous programmes have suffered from short-term, front-loaded, mainly quantitative targets to manage the twin deficits without sufficient regard to their long-term qualitative impact on the reform agenda. “It is time we restore the sanctity of long-term plans and deal with fragmentation and silo-working of various ministries as well as the centre and provinces,” PBC chief executive Ehsan Malik said in a letter to Finance Minister Muhammad Aurangzeb, who embarked on a journey to Washington to explore the construct of the 24th IMF Programme for Pakistan. Two glaring examples of short-term quantitative (but not backed by qualitative) targets are tax revenue and tariff-based measures to control the energy circular debt. “A smarter way would be to set targets that result in sustainable progress on the reform agenda instead of relying by default on the easy options of extracting more from those who are already contributing more than their fair share,” he said.