Zafar Iqbal
In a recent address, Pakistan’s Finance Minister, Muhammad Aurangzeb, called on “stakeholders” to develop a broader consensus on key economic issues facing the country to ensure sustainable stability and growth. His statement, made over the weekend, emphasized the need for national unity and cooperation, particularly among political parties, to chart a common path forward for Pakistan’s economy. However, the minister’s call for a unified “charter of economy” raises more questions than answers, as it lacks clarity on the specific issues to be included and does not offer a concrete roadmap for achieving political and economic cooperation.
Minister Aurangzeb’s call is not the first time that such a plea has been made by the ruling Pakistan Muslim League-Nawaz (PML-N) party. The need for a political consensus on economic issues has been voiced repeatedly over the years, and it is clear that the ruling party is now seeking a more unified approach in tackling Pakistan’s long-standing economic challenges. The PML-N’s leadership has made several calls for a political agreement to address economic instability, dating back to 2014, when former Finance Minister Ishaq Dar initiated similar discussions. Shehbaz Sharif, the current leader of the opposition, echoed this sentiment again in 2019, offering his party’s support to the Pakistan Tehreek-e-Insaf (PTI) government on a common economic agenda aimed at curbing the nation’s economic decline. Most recently, after the controversial elections in February 2024, Sharif reiterated the need for a charter of economy, hoping to bring political consensus to the forefront.
Despite these repeated calls, however, none of these efforts have garnered significant support from the opposition or other political parties. This lukewarm response is hardly surprising, given the lack of specific details and clarity on what such a charter would entail. While the concept of an economic consensus is widely endorsed, the practical steps for achieving it remain elusive.
One of the main hurdles in the push for a “charter of economy” is the internal divisions within the PML-N itself. For any meaningful consensus to take place, it is essential for the ruling party to first develop an agreement on broader economic goals within its own ranks. In the past, different factions within the PML-N have often had conflicting views on crucial economic matters such as tax reforms and the privatization of state-owned enterprises (SOEs). These internal disagreements create an environment of uncertainty and weaken the party’s ability to present a united front on economic policy.
Furthermore, the PML-N’s allies in the current coalition government also have varying economic agendas. Parties within the ruling alliance, such as the Pakistan Peoples Party (PPP) and the Jamiat Ulema-e-Islam (JUI-F), often disagree on critical issues like fiscal policy, social welfare programs, and trade relations. These differences make it difficult to craft a unified economic strategy, as each party is focused on advancing its own policy goals rather than negotiating a common economic framework.
Without a clear consensus within the ruling party and its coalition partners, it is unrealistic to expect the PML-N to effectively engage with the opposition parties and other stakeholders. For any charter of economy to succeed, it must first be rooted in an internal agreement on core economic principles within the ruling party and its allies. Only then can the government attempt to negotiate with opposition parties on a common vision for Pakistan’s economic future.
Another critical issue with Finance Minister Aurangzeb’s call is the lack of specificity in what exactly the government seeks from other parties. While he emphasizes the need for a broad consensus, the minister fails to outline the specific issues or economic reforms that the PML-N government wants to address through a charter of economy. Without a clear roadmap, opposition parties are left guessing about the government’s intentions and priorities, which only deepens mistrust and makes meaningful dialogue more difficult.
For a charter of economy to be effective, it must include concrete proposals for addressing Pakistan’s most pressing economic challenges. These could include issues such as tax reform, fiscal discipline, energy sector reform, foreign direct investment (FDI), and trade policy. Without clarity on the specific issues at hand, it is impossible to rally support from other political parties, business leaders, and civil society groups.
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Moreover, the focus of such a charter should not be limited to political stakeholders alone. While political consensus is important, bringing in non-political stakeholders—such as business leaders, economists, and representatives from key sectors like agriculture, industry, and finance—is essential. These economic players can provide valuable input and help ensure that any proposed reforms are practical, sustainable, and beneficial for the wider economy. The inclusion of diverse perspectives is crucial for minimizing resistance to long-standing economic reforms and fostering a more inclusive and holistic approach to economic policymaking.
Before meaningful progress can be made on a national economic charter, the government must first work to reduce tensions with the opposition and ease political polarization. In the current political climate, where tensions between the ruling party and opposition parties are running high, any attempt to discuss a charter of economy risks being perceived as a partisan effort rather than a genuine call for national unity. For consensus to be reached, the government must take steps to lower the political temperature, engage in dialogue, and create an atmosphere of trust and cooperation.
This requires building bridges with the opposition and addressing their concerns regarding the government’s economic policies. It also means putting aside partisan differences and focusing on the long-term economic welfare of the country. Only once the political environment is more conducive to cooperation can the government begin to engage in serious negotiations with opposition parties and other stakeholders on a common economic agenda.
Concludingly, while Finance Minister Muhammad Aurangzeb’s call for a “charter of economy” is a step in the right direction, it is clear that more needs to be done for it to have any practical impact. For a national economic consensus to be reached, the ruling party must first resolve internal divisions and reach agreement on key economic goals. Additionally, the government must outline specific issues and reforms that it hopes to address through the charter, providing a clearer vision for the future.
Moreover, the process should involve not only political parties but also business leaders, economists, and other non-political stakeholders to ensure that the proposed reforms are comprehensive, realistic, and widely supported. Finally, reducing political tensions and fostering an atmosphere of cooperation will be essential to creating the conditions necessary for a meaningful consensus on Pakistan’s economic future.
Without a clear, unified strategy and a commitment to inclusivity, the call for a charter of economy will remain just another unfulfilled promise. Only by addressing these challenges head-on can Pakistan hope to chart a sustainable path toward economic stability and growth.
