ISLAMABAD, Nov 29 (APP): Noted economist and Ex-Governor State Bank of Pakistan, Dr Ishrat Hussain Tuesday called for expediting and institutionalizing reforms and advocated recalibrating the existing system, eliminating the bottlenecks through a well-laid out plan that is proactive and going on to restructure the state-centric edifice.
While delivering a keynote address at Islamabad Policy Research Institute (IPRI) as a part of the lecture series, Dr Ishrat Hussain advocated restructuring of state units and policy reforms so that it could lower transaction costs, minimize cronies and improve the governance pattern.
While calling for digitizing the economy, he specified that it will lead to easing of the governmental role and buoy productivity and restore the confidence of the masses and businesses in the state.
He said that 44 percent of transactions are still in cash, which leads to the black economy.
The restructuring should lower transaction costs and provide access without frictions by curtailing arbitrary exercise of discretionary powers, reducing over-taxation, minimizing corruption, cronyism and collusion and ensuring public order and security of life and property.
He said the point to begin this process is the strengthening of the political and electoral system that moves away from dynastic and elite capture to a broad-based system where educated middle-class individuals of caliber and competence can be attracted to take part in politics.
Intra-party elections from the grass-roots level to the national level would open the doors, he observed.
Despite the pursuit of policies of liberalization, deregulation, de-licensing and disinvestment during the last 15 years, the overbearing burden of government interventions in the business life cycle looms large, he remarked.
Dr Hussain said recalibration of the governance structure should aim at delivering the core functions of the state, provision of basic services, education, health, water sanitation and security to common citizens in an effective and efficient manner and to promote inclusive markets through which all citizens have equal opportunities to participate in the economy.
