5Es FRAMEWORK TO TURNAROUNRD PAKISTAN
BACKGROUND
When the present Government assumed office in April 2022, it inherited the economy marred with huge macroeconomic imbalances. These include highest ever public debt level (Rs 49,242 billion),dwindling foreign exchange reserves abd currency depreciation, mounting trade deficit ($ 39.1billion), massive circular debt (Rs. 2.4 trillion), and higher twin deficits i.e. fiscal deficit (7.9% of GDP) and Current Account Deficit (4.6% of GDP). Unfortunately, as Pakistan economy was struggliging to overcome the repurcussions of Covid-19 related supply-side disruptions, The Russia-Ukraine conflict and devastating floods further worsened the situation and aggervated the inflationary pressures on the economy. Moreover, there was no economic recovery roadmap which could put the economy on sustainable economic growth path.
In contrast, during 2013 to 2018 Pakistan recorded much better economic performance through prudent economic policies and reforms recording lowest/single digit interest rate of 5.75% and stable inflation 4.68% in 2018. The emphasis on infrastructure development, energy projects, stable exchange rate and fiscal discipline laid a strong foundation for Pakistan’s progress during this time.Furthermore, in realization of Vision 2025, Government of Pakistan, under the able leadership of then Prime Minister Mian Nawaz Sharif, initiated China-Pakistan Economic Corriddor (CPEC), with an initial investment of over 29 Billion Dollars to transform Pakistan’s economy through improved regional connativity, enhanced energy security and conducive environment for local/foreign direct investment.Initial The improved connectivity with China and Central Asia, along with the planned development of Special Economic Zones was aimed at promoting export-oriented production by reducing transportation costs, and enhance Pakistan’s competitiveness in global markets.
Later on after the change of regime in Pakistan, the implementation of CPEC was marred by delays and most of the ongoing projects got suffered. Transition in government, combined with a lack of political will, created an unpredictable business investment environment. Inconsistent policy implementation and a lack of economic vision further hindered progress of CPEC and hampered economic growth and stability.
In order to put the economy back on a growth trajectory, on the instructions of Prime Minister Mian Muhammad Shehbaz Sharif, the Minister for Planning, Development & Special Initiatives organized a “Turnaround Pakistan” conference on June 28th, 2022. The Conference brought together prominent public sector stakeholders, provincial governments, key players from the national and international private sector, foreign missions, international development partners, financial institutions, independent experts, political parties, federal ministries, academia, think tanks, NGOs, parliamentarians and civil society.
On the basis of these extensive consultations, the Ministry of Planning, Development and Special Initiatives came up with a 5Es framework for socioeconomic development. The 5Es framework provides a short to medium term plan for achieving Vision 2025. Besides, laying the strong economic foundations for 2047 The Framework encompasses initiatives and multi-pronged strategies to address the overall challenges to Pakistan’s socio-economic development. Under this framework, variety of initiatives are already being executed along the following lines: Exports, E-Pakistan, Environment & and Climate Change, Energy & Infrastructure and Equity & Empowerment. The rationale behind each component of the framework is given below.
1.Exports
Increasing exports will bring sustainable economic growth by increasing foreign exchange reserves, exchange rate and enhancing value addition & innovation in manufacturing. Therefore, the first E addresses the issue of exports promotion with different initiatives in key sectors such as Manufacturing, Minerals, Agriculture, Information Technology and Manpower Export.
2.E-Pakistan
Growth of Information and Communications Technologies (ICTs) provide an opportunity for developing countries to leapfrog their industrial development by building a knowledge economy. The government therefore, is working on enhancing digital economy by ensuring availability of accessible, affordable, reliable, universal and high quality ICT services. Building on this, the digital infrastructure and capacity will translate into e-governance applications and other technology enabled services to spur economic growth.
3.Environment
Climate readiness is essential for the survival of Pakistan, which is among top ten most vulnerable countries in the world. Thus, the framework (4RF) focuses on providing institutional, legal and policy objectives for mitigating the impact of climate change besides addressing the water and food security.
4.Energy & Infrastructure
Availability of affordable renewable energy besides its conservation and efficient use is being ensured. Implementation of green building codes, climate resilient infrastructure and environment friendly technologies will be promoted.
5.Equity & Empowerment
Inclusive development empowering our populations’ high potential yet marginalized groups such as women and youth will unlock Pakistan’s true potential for growth and prosperity. The 5Es framework puts special emphasis on providing equitable access to all including marginalized groups via affirmative action as and where necessary. In particular, efforts are being made for the socioeconomic uplift of the 20 poorest districts across the country which are in dire need of such assistance.
The 5Es framework serves as a catalyst for change, igniting hope and optimism among the people. It aims to foster collaboration and synergy between the Government and key stakeholders, enabling them to work together towards a common goal of revitalizing the economy.It symbolized a collective commitment to overcome challenges,rebuild the economy, and create a prosperous Pakistan. Through the concerted efforts of the government, policymakers, and the active participation of the citizens, Pakistan will emerge stronger.This comprehensive, all-encompassing framework will act as the North Star for Pakistan’s socioeconomic development, leading Pakistan in the direction of long-term prosperity.
The Ministry has established a ‘Champions of Reforms’ (CORs) Network comprising leading experts in diverse fields to participate in policy making and support the development initiatives.
THE 7 PILLARS
The Conference encompassed seven diverse pillars which are the key drivers and enablers of growth as envisaged in Vision 2025 under which 35 Sub-Thematic Working Groups were defined which covered areas like; development of human and social capital; achieving sustainable and inclusive growth; focused institutional reforms and improving governance;improving national food security etc. The thematic groups were categorized into 7 pillars,each pillar focusing on several key development areas.
Achieving Sustainable, Indigenous and Inclusive Growth
This thematic group focused on export led growth, resource mobilization, blue economy, maritime sector development, urban development, arts and culture, and sports.
Energy, Water and Food Security
This pillar deliberated on key sectors of economy which include power sector, oil & gas, water resource management, agriculture productivity, competitiveness enhancement, milk and meat productivity enhancement, and tackling malnutrition and stunting.
Institutional Reform and Democratic Governance
The thematic groups under this pillar highlighted challenges being faced by Pakistan in the areas of Civil Service Reforms, Police &
Criminal Justice System Reforms and State-Owned Enterprises (SOEs).
Putting People First
Developing human and social capital, and various other important aspects of human resource development were discussed and deliberated upon such as health,education, population, manpower development, gender, social protections and
national cohesion.
Private Sector-Led Growth
Thematic groups under this mainly discussed areas such as creation of business-friendly environment, digital economy/IT, exports, start-ups, role of science technology and innovations, small and medium enterprises, cluster-based development and value chain gap improvements to enhance export led growth for investment & growth.
Improving National Competitiveness
This pillar conducted in depth discussion of possible
measures to be taken for improving competitiveness through enhanced productivity, innovation, and quality, augmenting exports & made in Pakistan by developing global brands and reforming higher education in the country.
Modernization of Transportation Infrastructure and Greater Regional Connectivity
The thematic groups under this pillar deliberated on regional connectivity via rail, road, CPEC and telecommunication. The Conference offered an opportunity to provide a short to medium-term framework to support the
country in formulating a coordinated set of policies to deal with its immediate economic crises and enable the economy to work at its full potential by untapping the hidden resources so that to ensure a better living for the people of Pakistan. Based on recommendations given by these thematic working groups, a framework for addressing Pakistan’s socio-economic challenges has been prepared which focuses on the key 5-E areas, namely Exports, E-Pakistan, Environment & Climate Change, Energy & Infrastructuren and Equity & Empowerment. The document ahead will expand on the government’s
vision for development in these key socioeconomic areas.

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