Domestic policy Nawaz Sharif

1 domestic policy

1.1 social policy
1.2 economic policy

1.2.1 overview
1.2.2 fy 2013–14
1.2.3 fy 2014–15
1.2.4 fy 2015–16
1.2.5 fy 2016–17
1.2.6 privatization
1.2.7 communications , development
1.2.8 pakistan vision 2025
1.2.9 nuclear power policy
1.2.10 fata reform

domestic policy
social policy


us secretary of state john kerry shakes hands sharif in 2016, @ intercontinental hotel in davos.

unlike sharif s previous 2 governments underpinned social conservatism, sharif s third term credited 1 of social centrism. called future of pakistan 1 underpinned educated, progressive, forward looking , enterprising nation . in january 2016, moved punjab government s policy of banning tablighi jamaat preaching in educational institutions , in february 2016 enacted law provides helpline women report abuses husbands , others despite criticism of conservative religious parties.

on 29 february 2016, government hanged mumtaz qadri shot dead salman taseer in 2011 on opposition blasphemy laws. according bbc news, move hang qadri indication of government s growing confidence in taming street power of religious groups. disliking of religious conservatives, promised perpetrators of honour killing s punished severely . on 9 march 2016, washington post claimed sharif defying pakistan s powerful clergy unblocking access youtube, pushing end child marriage, enacting landmark domestic violence bill, , overseeing execution of man killed salman taseer criticising blasphemy law. on 28 march 2016 sunni tehreek led protests of 2,000 islamic fundamentist protesters staged three-day long sit-in @ d-chowk in islamabad against execution of mumtaz qadri. demanded sharif government accepts demands, included implementation of shariah in country , declaring mumtaz qadri martyr. in response, sharif addreased nation claiming let clear spreading outrage, fanning fire of hatred, inciting sectarianism , creating problems citizens without doubt dealt means of law.

—nawaz sharif

on 16 march 2016, sharif s government declared hindu festivals diwali , holi, , christian festival of easter, public holidays, time magazine called step significant step country s beleaguered religious minorities. on 6 december 2016, pakistan s prime minister nawaz sharif approved renaming of quaid-i-azam university s (qau) physics centre professor abdus salam center physics. sharif announced professor abdus salam fellowship established include 5 annual funded pakistani phd students in field of physics. in response, council of islamic ideology crtised sharif s move claiming changing department s name not set right precedent.

on 5 january 2017, sharif stressed need operation zarb-e-qalam fight extremism , intolerance in society through power of writers, poets , intellectuals. addressing pakistan academy of literature, sharif said in society flowers of poetry , literature bloom, diseases of extremism, intolerance, disunity , sectarianism not born, sharif announced rs. 500m endowment fund promotion of art , literary activities in pakistan. on 9 january 2017, government denied visas international preachers tablighi jamaat conference in lahore. jamia binoria criticised sharif government s decisions.

on 11 march 2017, sharif in address @ jamia naeemia urged islamic scholars spread true teachings of islam , take firm stand against causing disunity among muslims. sharif called progressive , prosperous muslim world, asking religious scholars come forward take war against these terrorists logical end.

economic policy


overview

sharif inherited economy crippled many challenges including energy shortages, hyperinflation, mild economic growth, high debt , large budget deficit. shortly after taking power in 2013, sharif won $6.6 billion loan international monetary fund avoid balance-of-payments crisis. lower oil prices, higher remittances , increased consumer spending pushing growth toward seven-year high of 4.3 percent in fiscal year of fy2014-15.

asian development bank tributes gradual growth in economy continued low prices oil , other commodities, expected pick-up in growth in advanced economies, , alleviation of power shortages. however, sovereign debt of pakistan has increased dramatically, total debts , liabilities swelled rs. 22.5 trillion (or $73 billion) august 2016. sharif administration issued five-year $500-million eurobond in 2015 @ interest rate of 8.25% , in september 2016, raised $1 billion floating sukuk (islamic bonds) @ interest rate of 5.5%.

the sharif administration has either signed, or negotiating fta s expand trade liberalisation.

 turkey: turkey-pakistan free trade agreement
 south korea: south korea-pakistan free trade agreement
 iran: iran-pakistan free trade agreement.
 thailand: thailand-pakistan free trade agreement.
 malaysia: pakistan-malaysia free trade agreement expansion.

fy 2013–14

sharif along cabinet members barjees tahir , saira afzal tarar.

according pakistan institute of legislative development , transparency, quality of governance has marginally improved during sharif s first year in power within overall score of 44% in assessment of quality of governance in pakistan. scored highest in disaster-preparedness, merit-based recruitment, , foreign policy management, while received lowest scores on poverty alleviation , transparency.

pakistan s gdp growth rate fy 2012–2013 3.3%, despite business confidence in pakistan reaching three-year high in may 2014 largely backed increasing foreign reserves crossed $15 billion mid-2014. along that, in may 2014 imf claimed inflation has dropped 13 per cent compared 25% in 2008, foreign reserves in better position , current account deficit has come down 3 per cent of gdp 2014. standard & poor s , moody s corporation changed pakistan s ranking stable outlook on long-term rating.

however, in fy 2013–2014 pakistan received foreign direct investment of $750.9 million, 12.9% less amount country received in corresponding preceding fiscal year. on 9 february 2014, international monetary fund said pakistan has met of quantitative performance markers, economy showing signs of improvement , reform program remains broadly on track.

it striking reforms have continued despite disruptive domestic political challenges on last year, , heightened security threats islamist terrorism.

sharif made 2 major appointments; s.m muneer chief executive of trade development authority of pakistan , rizwan ahmed chairman of trading corporation of pakistan, enhance pakistani exports. on 9 april 2014, world bank claimed pakistan s economy @ turning point, growth recovery underway, projected gdp growth approaching 4 percent, driven dynamic manufacturing , service sectors, better energy availability, , revival of investor confidence. inflation steady @ 7.9%. fiscal deficit contained @ around 6 percent of gdp due improved tax collection , restricted current , development expenditure. current account deficit remains modest, @ around 1 percent of gdp, supported strong remittances , export dynamism, , external position improving since monetary , exchange rate policies switched gear towards rebuilding reserves last november.

on 4 july 2013, imf , pakistan reached provisional agreement on $5.3 billion bailout package aimed bolster pakistan s flagging economy , perilously low foreign exchange reserves, contrary election promise not take more loans. on 4 september 2013, imf approved $6.7 billion loan package revive ailing economy. loan given on three-year period. on imf s demanded pakistan plans carry out various economic reforms, including privatising 31 state owned companies.

fy 2014–15

pakistan s economic expansion financial year (fy) 2015, ended on 30 june 2015, led services growth in manufacturing slowed. industrial growth hobbled slowdown in large-scale manufacturing 3.3% owing continued power shortages , weaker external demand. resilience of small-scale manufacturing , construction sustained industrial growth @ 3.6%. agriculture growth remained modest @ 2.9%. private fixed investment slipped equal 9.7% of gross domestic product (gdp) 10.0% year earlier because of continuing energy constraints , weak business environment has depressed investment several years.

on 25 march 2015, moody s corporation upgraded pakistan s dollar bonds rating 1 notch stable positive. asian development bank projected 4.2% economic growth current financial year 2014–15 against target of 5.1%. second year in row sharif administration missed key goal in face of failure introduce reforms in areas of energy, taxation , public sector enterprises.

on 3 may 2015, economist published report outlining pakistan s economic performance. highlighted pakistan s economic performance said economy grow 4.7% next year, fastest rate in 8 years. consumer prices rose 2.5% in between january march 2015, smallest increase more decade. twice year central bank has lowered benchmark interest rate. said government of nawaz sharif takes credit economy s new stability. has stuck imf programme agreed in 2013, few months after came power in pakistan s first-ever handover 1 civilian government another. foreign-exchange reserves have more doubled, $17.7 billion.

a privatisation drive stalled last june resumed in april, when government sold stake in hbl pakistan $1 billion. three-quarters of bids came foreign investors. pakistan s stock market has doubled in dollar terms since start of 2012, in large part such foreign interest. economist said progress in providing economic stability encouraging. pakistan needs sustained growth of 5–7% year if markedly cut poverty-at last count, quarter of pakistanis below poverty line.

on 5 may 2015, standard & poor s revised projections pakistan s average real gross domestic product (gdp) growth 2015 2017 4.6 per cent 3.8 per cent , upped outlook on pakistan s long-term b- credit rating positive stable . s&p attributes largely positive projections diversification in income generation, government s efforts towards fiscal consolidation, improvement in external financing conditions , performance, , stronger capital inflows , remittances. escap report published in may 2015 claimed economic growth in pakistan picked 4.1% in 2014 average of 3.7% in previous 3 years , growth expected rise 5.1% in 2015.

fy 2015–16

pakistan s gdp projected world bank grow 4.5%. in south asian growth report, world bank said, in pakistan, gradual recovery around 4.5 per cent growth 2016 aided low inflation , fiscal consolidation. increases in remittances , stable agricultural performance contribute outcome. further acceleration requires tackling pervasive power cuts, cumbersome business environment, , low access finance. in fy2016, current account deficit has widen marginally due increase in trade deficit. nevertheless, exports expected increase after 2 years of stagnation, manufacturing continues suffer under energy shortages , low cotton prices saw modest increase.

sharif @ trilateral meeting joe biden on sidelines of world economic forum in switzerland.

during trip pakistan on 10 february 2016, world bank group s president jim yong kim applauded economic policies of government, claimed pakistan s economic outlook had become more stable. on 10 march 2016, pakistan textile mills association claimed 24-hour gas supply punjab s textile mills expected increase output of regions textile industry. on 19 march 2016, sharif approved new automobile policy, offers tax incentives new entrants them establish manufacturing units , compete 3 well-entrenched assemblers. major incentive new investors reduced 10% customs duty on non-localised parts 5 years against prevailing 32.5%. existing investors, duty slashed 2.5% 30% new fiscal year 2016–17.

on 8 april 2016, government on lobbying of international development groups introduced new methodology measuring poverty increased poverty ratio 9.3% 29.5%. new poverty line equal rs. 3,030 per adult per month, rs. 2,350. on 12 april 2016, pakistan institute of legislative development , transparency survey claimed quality of governance has improved, weakest performance has been under transparency. on 14 april 2016, fred hochberg, head of export–import bank of united states visited pakistan , claimed sees lot of opportunities expand exposure pakistan.

on 9 may, world bank s pakistan development report claimed current account in healthy position in preceding few months has shown surplus compared deficit. @ same time, report claimed pakistan s export competitiveness has diminished due protectionist policies, poor infrastructure, , high transaction costs trade. consequently, pakistan exports-to-gdp ratio declining last 2 decades. has reduced 13.5% in 1995 10.5% in 2015.

fy 2016–17

on 1 november 2016, pakistan , china kicked off first trade activities under china-pakistan economic corridor project.

on 15 june 2016, msci upgraded pakistan frontier markets status of emerging markets status. according blackrock up-gradation, in our view validation of substantial positive macro-economic changes pakistan has witnessed on recent years. business times estimated generate foreign capital inflows of $475 million middle of 2017. on 11 july 2016, bmi research report named pakistan 1 of ten emerging markets of future. report projected pakistan develop manufacturing hub on coming years, textile , automotive sectors posting fastest growth. on 15 september 2016 pakistan officially become signatory of oecd s convention on mutual administrative assistance in tax matters aimed @ curbing tax evasion. in 2016 book, rise , fall of nations, ruchir sharma termed pakistan s economy on take-off stage , future outlook till 2020 has been termed . sharma termed possible transform pakistan low-income middle-income country during next 5 years.

on 24 october 2016, months after sharif government concluded $6.4 billion three-year programme, international monetary fund managing director christine lagarde visited pakistan, during maintained pakistan out of economic crisis , added continued efforts needed bring more people tax net , ensure pay fair share. 2017 ease of doing business index recognised pakistan 1 of top ten economies globally making biggest improvements in business regulations. pakistan jumped 4 ranks position last year 148th 144th out of 190 countries.

on 31 october 2016, standard & poor s, citing improved policymaking resulting in improved macroeconomic stability, raised pakistan s rating b b-. revised upward forecast of average annual gdp growth 5 per cent on 2016–2019 earlier estimate of 4.7 per cent. in response s&p s upgrade, psx s benchmark-100 index posted largest gain in history, increasing 1,406.03 points (or 3.52%) on single day.

on 1 november 2016, hundreds of chinese trucks loaded goods rolled sost dry port in gilgit-baltistan first shipment of china–pakistan economic corridor. on 3 november 2016, sharif government announced renault expected start assembling cars in pakistan 2018, source earlier on 6 may 2016 had told reuters pakistan under consideration new production investment. on 7 november 2016, bloomberg news claimed economy expected grow around 5 percent annually next 3 years , claimed pakistan on verge of investment-led growth cycle.

on 15 november 2016, audi, in letter board of investment, expressed interest in setting assembly plant in karachi investment of $30 million. on 10 january 2017, economist forecasted pakistan s gdp grow @ 5.3% in 2017, making fifth fastest growing economy in world , fastest growing in muslim world. on 17 january 2017, sharif travelled attend world economic forum held meetings antónio guterres, stefan löfven, ranil wickremesinghe , doris leuthard. attended seminar hosted abraaj group, investing in pakistan: new reality, sixty management executives of mncs aimed @ attracting foreign direct investment. among attendees included jay collins of citigroup, paul polman , michael rennie of mckinsey. on febuaray 6th, 2017, tyler cowen writing bloomberg termed pakistan underrated economy in world. on 16 may 2017, cpec document published dawn stated cpec includes penetration of sectors of pakistan s economy society chinese enterprises , culture.

privatization

sharif chairing pakistan-britain energy dialogue , investment conference in london.

wall street journal reviewed pakistan s privatisation plans on 25 september 2013 in article published, wsj reported islamabad plans sell 35 inefficient state-owned enterprises. officials have announced plans sell 35 public corporations on 3 years, including power companies, pakistan state oil, pakistan international airlines , pakistan steel mills. these enterprises lose taxpayers 500 billion rupees ($4.7 billion) year, while delivering poor service. inefficiencies in energy cause frequent blackouts, , supply problem exacerbated government subsidies have cost further 1.5 trillion rupees on 5 years. privatisation process led 15-member privatisation commission headed mohammad zubair, formerly ibm s chief financial officer middle east , africa. on 9 january 2014, board of privatisation commission approved divestment of shares of 3 banks along 2 other companies.

the government announced restructure pakistan international airlines, flies routes around world, including north america. pia has put out tender lease new aircraft, improve capacity , save fuel more-efficient planes. part of restructuring, pia has been split 2 companies. holding group retain 250 billion rupees in debt , excess personnel, , new pia hold lucrative landing rights , new aircraft. afterward, government plans sell 26% stake in new pia strategic partner. in february 2016, pakistan international airlines corporation (piac) converted public limited company pakistan international airlines company limited (piacl) make way privatisation, trigged eight-day long union strike. on 23 december 2016, chinese consortium won bid 40% stake in psx amount $85.5 million.

communications , development

upon assuming office, sharif launched public sector development programme (psdp) fy 2014–15 consists of construction of diamer-bhasha dam, dasu dam, faisalabad-khanewal m-4 motorway, rawalpindi-islamabad metrobus service , lahore-karachi motorway. while sharif has approved feasibility studies construction of rail links islamabad muzaffarabad via murree, havelian pakistan-china border , gwadar karachi, along other initiatives such approach roads new islamabad international airport, new gwadar international airport project, jetty , infrastructure development @ gadani, gwadar port economic free zone project, pak-china technical , vocational institute @ gwadar , quaid-e-azam solar park @ lal sohnra park phase-ii (600 mw).

on 24 april 2014, sharif s administration completed auction next-generation telecom spectrum s raising $1.112 billion process. sharif handed on 3g , 4g mobile spectrum licenses successful mobile companies – mobilink, telenor, ufone , zong – sharif claimed rs 260 billion collected in treasury every year because of new technology, technology create millions of jobs in service sector. counter competition, sharif upon assuming office addressed nation , launched prime minister s youth programme, pkr 20 billion provide interest free loans, skills development , provision of laptops.

prime minister s youth programme launched in 2013.

during 2014–15 fiscal year, sharif s government announced increase in public sector development programme rs 425 billion in rs 525 billion. psdp main instrument in government s direct control channelise funds , make developmental interventions. government provides budgetary allocations projects , programmes yield maximum benefits society in shortest possible time. while government allocated whooping rs 73 billion china-pakistan economic corridor, including cornerstone development, lahore-karachi motorway.

pakistan vision 2025

on 11 august 2014, sharif administration unveiled ambitious programme transform country economically strong , prosperous nation , enhance exports $150 billion 2025 , economic times reported. according daily times, vision 2025 based on 7 pillars are: putting people first; developing human , social capital; achieving sustained, indigenous , inclusive growth; governance, institutional reform , modernisation of public sector; energy, water , food security; private sector-led growth , entrepreneurship, developing competitive knowledge economy through value addition , modernisation of transportation infrastructure , greater regional connectivity.

considering existing political challenges faced sharif , shaky democratic process in country, ownership of rather flawed vision 2025 major concern. question future political setups continue work on plan make reality, in case of change of guard @ center? each successive government in pakistan has historically made u-turn predecessor s policies. if trend prevails, vision 2025 fail translate action.

nuclear power policy

on 4 march 2017, sharif s administration approved merger of fata khyber pakhtunkhwa.

prime minister sharif has been staunch advocate of constructing nuclear reactors. in november 2013, sharif ceremonially broke ground on $9.59 billion nuclear power complex built in karachi. upon completion, reactors produce 2200mw of electricity. during groundbreaking ceremony, sharif stated pakistan construct 6 nuclear power plants during term in office. went on pakistan has plans on constructing total of 32 nuclear power plants 2050, generate more 40,000mw of energy. in february 2014, sharif confirmed iaea future civilian nuclear power plants , research reactors voluntarily put under iaea safeguards.

fata reform

on 3 march 2017, sharif s cabinet approved set of steps taken proposed merger of federally administered tribal areas (fata) khyber pakhtunkhwa , 10-year rs. 110 billion development reform package fata. under reform project, jurisdiction of supreme court , peshawar high court extended fata.