Pakistan's economy, which has been undergoing a period of stabilisation, may at last start showing some early signs of recovery from the current financial year. This could be made possible with the launching of nine mega. projects which have already been identified and put on the government's priority agenda. Though they are due for completion within the next three to five years but their economic impact on national production and job creation should be immediate and visible. These projects include Gomal Zam dam, Mirani dam, Greater Thal canal, Right Bank Outfall Drainage project, Northern Areas Tourism Development, Quetta greater water supply project, Gwadar coastal highway, Chashma Right Bank canal and Turbat Road project. Significantly the list carries most of such projects which relate to the development of water resources and communication networks like roads.
The emphasis on building infrastructure, which had been non-existent in a number of areas, is reassuring. However, what will need to be ensured is regular availability of funds for these projects, their close monitoring and completion without involving delays or cost escalations. Although the announcement to launch them coincides with indications of economic assistance from multilateral institutions and friendly countries but looking at the speed at which these projects are supposed to be completed, timely availability of resources to finance them will remain one of the most critical factors. In the second phase, which will be taken in hand later, some eleven more projects will be started. But it is also important that rehabilitation of the old infrastructure is also simultaneously continued. Thus the new projects will be able to supplement the existing infrastructure facilities which had already been lacking.
In this scenario, the challenge that emerges is three-fold. The government has to persist with its economic stabilisation programme keeping to the macro-economic targets agreed with the donors. It has to husband the financial resources with greater discipline. The nine priority projects, envisaged in the first phase, will create economic activity both directly and indirectly as goods and services have to be provided for them. That should give some early impetus to the economy and start creating jobs forthwith. The projects which add to the infrastructure, create new jobs and increase national income must continue to receive high priority. Now that the government has decided to expand public spending for important infrastructure projects, it should also encourage private sector investment initiatives.
