Planning Commission issues draft of proposed economic policy : Suggests measures for recovery

Islamabad: The ongoing war against terrorism and the security concerns of the country has impacted the socio economy of Pakistan in multifarious ways. Moreover energy crises in has deteriorated the economy further.The country has to lay down microeconomics foundations for the development of macroeconomics but for this purpose the prevailing of good governance and creating investment friendly atmosphere is the need of hour which the.This was stated in the draft of growth strategy “Pakistan: Framework for Economic Growth”, which is under preparation by Planning Commission of Pakistan.The draft stated that an unintended consequence of national economic policies has been the stifling of internal markets, cities and communities, which play a critical role in fostering productivity, innovation and entrepreneurship and ultimately promote growth, prosperity and development.`

Keeping in view the most pressing need in Pakistan’s history to search for a new model for economic development, Planning Commission of Pakistan proposed , in new development framework that markets should be the growth-driver that rewards efficiency, innovation and entrepreneurship, while the government is facilitator that protects public interests and rights, provides public goods, enforces laws, punishes exploitative practices, and operates with transparency and accountability.The New Development Approach will focus on: ensuring productivity-led growth by incentivizing innovation and entrepreneurship, improving governance so that markets and commerce can flourish, increasing diversity and resource mobility through inclusive zoning and empowering youth and community for improved quality of life.The report shows that the economy of Pakistan needs to grow with the annual rate of 7 percent to absorb to the new addition to the labour force and to start cutting into the ranks of the currently unemployed.The framework draft described that the macroeconomics imbalances especially on fiscal side and low quality of infrastructure are the major impediments in gain higher growth of GDP.