urages an outflow of capitol. A more practical proposition for decreasing the deficit would be for the government to lower yields on its securities and saving schemes. Taxation should also be brought up to date and been adjusted to levy new issues rather that old. c)To assist industries interest rates will have to be cut further in order for these operations to breathe.d) The industry should weed out the units that do not operate up to a certain efficiency standard so as to allow the inflow of cash to competent units. Ceasing to provide revival packages to dying industries as Pakistan has being doing for the last decade can do this. They need to let the free market take its course and eliminate non-competitive firms.e) The rupee is substantially overvalued and must be allowed to float so as to allow exports to sell fairly in international markets and to make foreign products less competitive in local markets. In turn, a revamping of the monetary system to correctly assess drawback claims would greatly improve the financial situation.f) There is one government servant for every thirty-five Pakistanis. Therefore the government needs to ‘right-size’ itself so as to improve its efficiency and cut back on expenditure on benefits. The multiple layers of required processing shake the present effectiveness of policy. A smaller, more efficient government would mean that policies would not hit the streets after the fact.g) A problem far greater than corruption is the lack of competence in public sector enterprises. There is a need for more specialists in key departmental positions instead of the present use of generalists to man key positions.h) Pakistan currently spends more than twice as much as India and Sri Lanka do per student at the primary and secondary levels. Hence there is a need to restructure the social aspect of the public sector through decentralization, so as to bring about greater efficiency. I) After the acquisit...
