Growing disappointment.

As days pass by the disappointment in the Budget 2020: 21 keeps on mounting! COVID: 19 aside (by now a patent excuse on a global scale for any mismanagement) so what really just happened here in Pakistan over the last two years that has resulted in such a bleak economic picture After all the PTI manifesto touched upon all the right notes in claiming removal of conflict of interest and rent seeking building inclusive as well as non: extractive institutions resurrecting SOEs merit or competence: based teams etc. Perhaps to answer this properly one has to take a slight peep back in the economic events that followed the last general elections. What we see is that either due to lack of experience (of economic governance per se on a national scale) or owing to a hybrid model where the PTI leadership itself felt obliged to others for the very status it assumed the process started on the wrong foottoo many cooks spoil the broth! In a total disconnect with reality and with each other as a team a perception of harsh accountability in addition to witch hunting was unleashed that sent a scare through the spine of the markets.

The young unbridled cadre of newly elects unleashed a barrage of irresponsible and senseless statements that though had little or no connection with real ground realities still instead compounded the problems for the economic managers. Economic activity came to a halt and investors went into their shells. Adding insult to injury almost everyone was branded a thief and an environment was developed where a perception was created that taxes from here on would be extracted like nobodys businessa notion that needless to say carried numerous negative connotations for the economy. First Pakistanis in any case pay more than their fair share of taxes (the writer has written numerous articles explaining this and giving regional comparisons) and second even assuming that they dont the thing is that creating a negative perception or panic in the economy can never be good for business in fact it becomes counterproductive.

To make matters worse amidst this uncertainty Pakistan entered into a poorly thought through IMF program which in turn unleashed a series of subsequent blunders that saw compromised human resource choices in key positions setting of unrealistic revenue targets thereby adding to the existing fears of tax extortion and of course the home grown economic jolts: Abruptly slowing down the economy (too much too fast); stoking...