Finance Minister Muhammad Aurangzeb has urged all relevant parties to come together and build a wider agreement on the pressing economic challenges facing Pakistan to ensure long-term stability and growth.
In a statement to the media over the weekend, Aurangzeb emphasized the need for unity in the national interest, suggesting that all stakeholders should work towards a common “charter of economy.” While he did not specify exactly who he was referring to, it appears his focus was on achieving consensus among political parties. However, he did not outline the specific issues or policies that should be included in such a charter.
The ruling Pakistan Muslim League-Nawaz (PML-N) has long advocated for a political agreement on the nationโs economic direction. Similar calls were made in the past, with former Finance Minister Ishaq Dar pushing for a consensus in 2014, and opposition leader Shehbaz Sharif echoing the sentiment in 2019, offering his partyโs backing to the Pakistan Tehreek-e-Insaf (PTI) government to prevent further economic decline. In February this year, Sharif reiterated his call for a charter of economy, soon after a contentious election. Despite these appeals, responses from other parties have remained tepid, although there has been widespread acknowledgment of the need for such an agreement.
For a successful consensus, the PML-N leadership first needs to reach an internal agreement on its broader economic goals. The party has previously struggled with differing views within its ranks, particularly on issues like tax reform and the privatization of state-owned enterprises (SOEs). Additionally, PML-N’s current allies in the ruling coalition often disagree on various economic matters, as each party has its own distinct agenda. Without internal unity, it will be difficult for the PML-N to persuade opposition parties to engage in dialogue and formulate a shared economic plan.
Moreover, any call for a charter of economy should be accompanied by specific issues and themes that the government wants to address, providing clarity on what such an agreement would entail. The consensus should extend beyond political parties to include key economic stakeholders, such as business leaders and financial experts, in order to minimize resistance to long-needed reforms. Engaging non-political stakeholders is essential for the success of any national economic initiative.
Before pushing for an economic consensus, the government must first ease tensions with the opposition and create a more conducive environment for serious discussions. The next time the ruling party talks about an economic consensus, it should be more transparent about the specific issues it aims to address in the proposed charter.
