She said this at the launch of a CSF report titled ‘Drivers of Growth and Competitiveness in Pakistan – A Strategic Framework’. The report identifies the key drivers of Pakistan’s economic growth and competitiveness and highlights why the country is falling behind other high-growth Asian economies.
High, sustained economic growth is almost universally considered a necessary condition for improving the quality of life and reducing poverty, Khar said, adding that Pakistan has done considerably well in the past years and should continue to do so.
The report provides data showing that consumption, partially fuelled by transfers from abroad, drove strong growth between 2002 and 2007. However, she warned that exports and investment, which hold better potential to drive high sustainable growth, lagged far behind the growth of consumption.
The report goes beyond the usual macroeconomic prescriptions and focuses on practical recommendations, according to Khar. Such measures include fostering a thriving entrepreneurial culture and encouraging innovation.
“Pakistan’s economy has performed reasonably well amidst enormous internal and external pressures. We have stabilised our economy and now our journey to recovery starts, not withstanding recent floods that played havoc with infrastructure, livelihood of the people, human life and private housing. Our resolve to rehabilitate and reconstruct is even greater than the disaster,” highlighted the finance minister Dr Abdul Hafeez Shaikh, in his statement in the report.
The report is an effort of the CSF, a joint initiative of the ministry of finance and the United States Agency for International Development, to reposition Pakistan’s economy competitively.
Published in The Express Tribune, September 5th, 2010.
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