Politicians must agree on vital economic issues

The latest rift among key partners in Pakistan's ruling coalition on Monday marks yet another unwelcome development for the country's economy.

For the past six months, Pakistan's newly elected coalition government had tried to settle down to the business of managing the country's vital affairs, including the economy. But the eventual break in the ranks of the coalition now confirms that the efforts at forging unity to significantly improve Pakistan's outlook were indeed largely futile.

The key issue for business leaders in looking ahead to the future of their interests was essentially the way that the policies of key political players related to the economy.

At the outset, it has to be said that the main political parties do not differ significantly in their choices of economic policies as far as their stated goals are concerned.

However, the bigger difference was the ways in which each political player saw his or her specific role in executing economic policies during the coming years of their rule. This meant that one political player could well end up with a different interpretation of economic policies.

The two main political players, who till Monday were partners in the ruling coalition, have in the past targeted each other's economic policies. While both the Pakistan People's Party and the Pakistan Muslim League-Nawaz, support capitalism and private entrepreneurship, differences have cropped up over the conduct of policies.

This has essentially meant that each of the two parties, while in power from 1988 to 1999 before former president Pervez Musharraf seized power in a bloodless coup, targeted the other with accusations of corruption and mismanagement. But events over time have adequately demonstrated that adverse behaviour ranging from witchhunts to simply admonishing each others' track record on managing the economy, is just not in the interest of either political parties.

Crucial

For the sake of improving and sustaining Pakistan's economic outlook, three interrelated initiatives are crucial for the country:

First, there must be a publicly stated and oft-repeated bipartisan consensus on keeping vital aspects of the economy away from political divide. This is essential to demonstrate to past, present and future investors that the economy will not become tangled in Pakistan's oft-divisive politics.

Furthermore, there must also be a clear demonstration that the individuals charged with responsibilities tied to the economy will be left to function independently. Such assurances are absolutely crucial to enforcing the fundamental view that the economy and its workings will remain detached from Pakistan's politics.

Second, it is vital for both parties to come together even as they remain split, to back new legislation in support of economic reforms. This is essential to demonstrate not just a bipartisan consensus but also a clear path to the future. For many investors, such a consensus would provide assurance of long-term continuity of economic policies and trends.

Finally, in the overall interest of developing and promoting vital aspects of the economy, it is crucial for the government and the opposition to jointly sponsor new initiatives involving some of Pakistan's reputed names in relation to the business world and the economy. This would include sponsoring forums and institutions dedicated to considering the present trends and future outlook, just at a time when the road to future reforms looks increasingly murky.

The writer is a journalist based in Pakistan.