Experts pore over fiscal, governance reforms
PHOTO: FILE
A collaborative event between the World Bank Group Pakistan and the Pakistan Institute of Development Economics (PIDE) brought together stakeholders committed to shaping Pakistan’s economic landscape.
The gathering, designed to support the Pakistan’s new economic development agenda over the next five years, was marked by rich discussions and a shared commitment to actionable reforms.
Pakistan Institute of Development Economics (PIDE) Vice Chancellor Dr Nadeemul Haque proposed an economic reform initiative titled "ISLAAH: Immediate Reform Agenda - IMF and Beyond."
He said the strategy emerged in response to Pakistan's pressing need for substantial external financing, highlighted by an IMF report which necessitates over $120 billion in the next five years. Dr Haque's reform agenda addressed crucial sectors including regulatory modernisation, tax reform, market liberalisation, energy efficiency, and enhancements in agriculture and banking.
A key feature of the reforms is the introduction of a 'Regulatory Guillotine' aimed at eliminating burdensome regulations that hinder business growth and innovation. “These reforms are designed to rejuvenate Pakistan's economic landscape, facilitating a more business-friendly environment, optimising export strategies, improving import regulations, and enhancing overall sectoral efficiencies.”
The goal is to catalyse investment, create jobs, and promote higher GDP growth, thus steering Pakistan towards long-term economic stability and prosperity, he said.
While talking on “Reforms for a Brighter Future: Time to Decide,” Mathew Verghis, Regional Director of the World Bank Group (South Asia) stated that Pakistan's economic model is unsustainable due to its reliance on borrowing to finance its fiscal and current account deficits, leading to a growing debt level, which has reached 80 per cent of GDP. He further added that Pakistan's spending exceeds its revenue, and it imports more than it exports, resulting in increased domestic and external borrowing.
However, he also noted that Pakistan has the potential for a brighter future, leveraging its youth, natural resources, and strategic location to achieve 7-8 per cent annual GDP growth and emphasised the need to prioritise reforms addressing the current economic crisis.
Dr Durre Nayab, Joint Director, PIDE talked about "Public Administration for the 21st Century". She addressed critical inefficiencies in Pakistan's governance system, proposing comprehensive reforms across various sectors including the cabinet, civil bureaucracy, judiciary, and local government. She also highlighted the necessity to reduce the size of the federal cabinet, limit political appointments, and emphasise expertise and performance in governance roles.
Published in The Express Tribune, May 16th, 2024.