I would argue that the critics are wrong. I would further argue that the Planning Commission’s growth framework is extremely poor friendly far more than previous plans and policies. Let me show you why.
Grow Pakistan - NDA
New Development Approach of the Planning Commission of Pakistan
Saturday, November 12, 2011
Cities as Growth Centres
I would argue that the critics are wrong. I would further argue that the Planning Commission’s growth framework is extremely poor friendly far more than previous plans and policies. Let me show you why.
Saturday, July 2, 2011
International Roundtable Discussion on the New Growth Strategy
International Roundtable Discussion on the New Growth Strategy
Policy Dialogue on the New Growth Strategy of Pakistan: Moving Forward
13-14 July 2011, Islamabad, Pakistan
Planning Commission is charged with developing growth policy and managing the Public Sector Development Program. The National Economic Council (NEC) headed by the Prime Minister has approved the New Growth Framework (NGF)—a strategy that seeks accelerated and sustained growth and development based on economic reform and an emphasis on productivity. The NGF formulated at Planning Commission through widespread local and international consultation focuses on building strong local ownership for a quality development strategy that is informed by the best knowledge and analysis available.
Following the NEC approval of Planning Commission’s growth framework, an international roundtable discussion is being held in collaboration with UNDP to have an inclusive session with parliamentarians, academia, professionals, business community and the civil society to chalk out an implementation for reforms approved under NGF. The roundtable will be attended by global experts from United States, Malaysia, France, Indonesia, China, Singapore etc. The roundtable will bring together public sector universities from all across Pakistan through widest possible videoconferencing arrangement. The themes of the roundtable discussion will revolve around key interventions of the growth framework, which includes:
Rethinking Pakistan’s Economic Growth Paradigm | Productivity and Innovation |
Governance and Institutional Reform | Deepening and Maintaining Openness |
Vibrant and Competitive Markets | Creative Cities |
Connecting to Compete | Community Engagement |
Results Based Management | Energetic Youth |
The Planning Commission invites you all to the International Roundtable Discussion on the Growth Strategy on 13th-14th July, 2011 at the Marriot Hotel, Islamabad. We welcome you all to attend the roundtable discussion and give your valuable inputs. To confirm your attendance, email us at maryam.haider@undp.org, briefly stating your interest to attend the event along with your name and contact number.
Friday, April 15, 2011
Latest Draft of the New Growth Strategy
http://pc.gov.pk/nda/index.htm
You can see the full document here:
http://pc.gov.pk/nda/PDFs/growth_editing_14-04-2011.pdf
We look forward to your comments and suggestions as we move this document into its final stages!
Thanks
Tuesday, March 8, 2011
Beyond PRSPs: National and Provincial Growth Strategies
- Parliament was never fully engaged by the government for consultation and input on PRSPs. There is no reference to the effect of the approval of the PRSP in the parliamentary debates.
- PRSP-I and II do not define any distribution mechanisms for growth. In fact the term land reforms (which is at the core of asset redistribution) finds no mention in these documents.
- Education and health related expenditures under PRSP had met a resource constraint (and cuts) starting 2009. PRSP had also ignored the important problem of health financing for poor.
- Local governments had no role in the delivery and management of health and education sector programs.
- No specific actions were envisaged towards legal and judicial reforms in the country.
- The post-18th Amendment milieu will require a different socio-economic planning, implementation, monitoring and evaluation regime – which is currently not envisaged under PRSP.
Monday, March 7, 2011
It's none of your business
They are capable of resuscitating a dying economy and of making third world countries first world powers. They can develop cities and rural areas, put an end to wars, and make societies and communities stronger. These are businesses. They come in all shapes, sizes and legal status and are the backbone of any economy. Sony, Toyota and Honda put Japan on the map while it is a common saying that no two countries with a McDonald’s have fought a war with each other since they each got McDonald’s. So if any country wants to do well locally and globally, businesses should be allowed to grow and to establish their own niche. For Pakistan, flourishing and well-established markets seem to be the only hope for the country stuck within an ever-expanding web of problems.
While Pakistan is not as bad as it seems when it comes to establishing businesses, it has not been as great as it can be. Doing Business 2011 ranks Pakistan at 83 among the 183 countries of the world, the highest among the South Asian countries. The question then becomes that despite the relatively better ranking in South Asia, why is Pakistan still not able to develop or grow like some of the lower ranked countries in the region? The answer is that while Pakistan is doing comparatively well for businesses, but given its current geo-political situation it hasn’t done well enough. Pakistan needs to step up its game to catch up with other countries in growth and development.
But to do this, Pakistan has to look towards the problems faced by local businesses. These are pretty standard revolving mostly around lengthy administrative procedures peppered with a heavy dose of corruption. While the Securities and Exchange Commission has set up a relatively fast system of e-Services to help businesses register, the other procedures takes the average time of setting up new businesses to 21 days. This compares poorly with Singapore where businesses take 3 days to set up. Similarly, registration of property involves only six procedures, but somehow takes 50 days due to the complicated execution and registration process for the deed. Bribes are also an additional cost with businesses having to pay approximately Rs 75,000 to acquire land and an average of Rs 25,432 to avoid tax auditing. In addition, while businesses in Pakistan pay the least taxes (as a percentage of their profits), due to extensive administrative barriers, they take 560 hours to file them, almost double the Indian average of 258 hours. With the notorious backlog of cases in Pakistani courts it is not surprising that contract enforcement in Pakistan takes 976 days while in Vietnam it only takes 295 days.
While dealing with corruption seems to be a hopeless case, Pakistan can emulate others in improving administration by setting up internet kiosks for businesses to register (like India); gathering support for tax-simplification programs through partnership with the press (like Yemen) and introducing time limits for legal commercial cases (like Algeria).
But Pakistan doesn’t even need to look too far to adopt better business practices. Doing Business 2010 reports that while Pakistan does relatively okay overall, some parts of it do better than others. While countrywide it takes an average of 21 days just to set up a business, a business in Islamabad can do so in 16. Similarly, in dealing with construction permits, registration of property, trading and enforcing contracts, Multan, Faisalabad, Karachi and Sukkur are the best in terms of either fewer days or fewer procedures. If the best practices of all the cities were used in all the major cities, back-of-the-envelope calculations show that an average businessman can save over $1,500. If one city in Pakistan can do it, it should not be difficult for the others to follow suit.
It seems that a little less (and smarter) regulation is what Pakistan needs right now, especially in case of businesses and markets. To boost our local markets and become competitive internationally, the government needs to let the markets function freely on their own. That is why the Planning Commission’s New Development Approach (NDA) is trying to better markets by implementing a policy of less regulation. Maybe it is time to try a new approach; maybe it is time to let Pakistani businesses take the helm and hopefully give the nation more development, a better future and its citizens something to smile about.
http://tribune.com.pk/story/115070/economic-backbone-its-none-of-your-business/
Published in The Express Tribune, February 7th, 2011.
Monday, February 28, 2011
Need for Promoting Public-Private Partnership
To deal with these challenging circumstances, IMF has highlighted some key issues which need to be looked at when undertaking any infrastructure development project. These include: what investments offer the biggest boost to growth? How much investment is needed and by whom? How to finance this investment without taking on too much debt? Without looking at these issues, there remains a much higher probability that the project will get delayed to an extent that it no longer remains needed. If the project does get completed, long delays will push the cost to an extent that the cost-benefit analysis done when the project was conceived is no longer valid. Countries like Pakistan which are very much financially constrained must realise these issues and bring out policies aimed at utilising their full strength.
Wednesday, February 23, 2011
Pakistan's first (mis)planned city
Let’s start by looking at the overall planning. The zoning laws of the city seem to be beset by an anti-commerce bias, as they disproportionately lean towards residential housing – specifically large houses for the elite. Coupled with the restriction on conversion (to commercial) of residential areas, a large number of offices, restaurants and small businesses are illegally operating through houses in these areas. Commercial areas are allocated just 5 percent in the schemes compared to 55 percent for residential houses. The maintenance of the current commercial areas has been severely neglected resulting in a deteriorated outlook – explaining one reason for the reluctance of these businesses to move to commercial areas. If maintenance standards exist, they lack efficient implementation. The more important reason, of course, is that businesses save time and money. That is a huge revenue loss for CDA and a loss of opportunities for the business not being situated in a commercial area.
Mixed-use areas are also conspicuously missing from the zoning laws. City productivity and employment generation needs the growth of entertainment, hotels, shopping areas and offices in large complexes. Moreover, mixed-use areas and city centres ideally contain high-rise buildings, as land prices are at a premium, making tall buildings economically favourable. Height restrictions imposed by the development authorities discourage high-rises, thus pushing up the cost per square foot. It is clear that the current commercial areas are not adequately catering to the needs of businesses and offices. Upcoming business ventures find it near to impossible to afford the exorbitant rental rates of commercial areas. Are these regulations then, restricting innovation, entrepreneurship and the resulting economic benefits?
In the case of housing, the focus on large single-family homes has resulted in a shortage of housing and has especially highlighted the absence of affordable multiple-family homes, flats and apartments. Furthermore, the lack of adequate rent control legislation makes it difficult to maintain flats and apartments. The real estate market in Islamabad is based on massive speculation, with properties often purchased, but not developed and resold for profit. A vacant land tax or property speculation tax could be implemented to counter speculative property purchasing. The lack of adequate property rights protection, on the other hand, is leading to increasing incidents of land grabbing in the suburban areas of Islamabad and giving rise to qabza groups.
Looking at the schooling system, schools are part of the 4 percent allocated to public buildings in the zoning laws. Public buildings include schools, mosques, community centres, hospitals, dispensaries, and post offices; yes all that in only 4 percent. Can we be surprised then, that some of the best private schools are operating through houses in residential areas? With the public schools standards deteriorating, the demand for private education is on the rise, but these schools have not been provided space. They continue to operate through illegal encroachments and cause massive traffic jams and parking problems. But when it comes to anti-encroachment drives, it is the rehriwalas (street vendors), the poor entrepreneurs, that bear the brunt.
What about the space for community, leisure and entertainment? Islamabad has no cinemas, theatres or space to facilitate people to come together and share ideas. There are also no public libraries of any significance. These places are essential for learning, bringing people together, increasing interactions and stimulating community discussions. What social or economic opportunities does the city provide to the youth? If we continue to stick to our mindset of ‘small is beautiful’, the opportunities will continue to dwindle.
These are just some ideas scratching only the surface of a problem that is not only limited to Islamabad. Urban planning and city development is an under-researched area in Pakistan’s economic and development spheres. The Planning Commission’s New Growth Strategy developed under the guidance of Dr Nadeemul Haque, for the first time in Pakistan’s growth strategy, includes cities as an essential ingredient to the country’s economic growth and development. It is time for communities to take a stance on what they want from their cities. Physical infrastructure is being built without first analysing the governance and ‘software’ issues.
This strategy attempts to identify laws and regulations that are preventing cities from realising their true potential and presses for deregulation. It will be the first step in bringing these issues to the forefront of the country’s policy spheres and get a dialogue started between the community, upcoming entrepreneurs, youth and policymakers towards a more inclusive and tolerant society.
Sana Shahid
Published in The Nation on February 4, 2011