Some analysts note that when oil prices decline, remittances decline as well. Local government should report to the provincial government about its activities and provincial government should report to federal government.
The government will face strong opposition to the privatisation of inefficient and loss-making public sector enterprises — including the Pakistan International Airlines PIAPakistan Steel Mills and Pakistan Railways, but they can be made to function more efficiently were the government to initiate a restructuring process, including some reduction in their workforce.
The impact of measures to stabilise the macroeconomy, which any lender will certainly insist upon, will have an adverse impact on ordinary people, as energy subsidies will need to be reduced to bring down the increasing circular debt, which has now reached over seven billion US dollars.
Tax collection can play a vital role to improve the economy of Pakistan. Let us take each one of these determinants in turn for Pakistan.
If our government does so we can do more by same resources which are being wasted today. In this regard, avoiding confrontational statements in the political and economic fields is necessary.
Selected but targeted government support for exporters could make a significant difference here. With new power plants likely to become operational in and beyond, the supply outlook is favorable.
Institutions There is a third determinant of long run growth which is best understood to refer to the institutional aspects of an economy or society, aspects such as corruption, transparency, rule of law, the burden of regulations, the extent of trust and social capital and so on.
Low private investment rates also signify that private investors are unable to connect to global markets at a large scale.