Professor Stefan Dercon, a Belgian-British economist, met on Tuesday with Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, to discuss key economic issues including macroeconomics, foreign reserves, exports, imports, and the need for an effective industrial policy.
According to a statement released by the Ministry of Industries and Production, the two engaged in a detailed conversation about the challenges and opportunities facing Pakistan's economy. Khan highlighted that Pakistan lacks both a formal bankruptcy law and a clear industrial policy, which are essential for the sustainable growth of the industrial sector. He stressed the urgency of developing a comprehensive industrial policy to improve industrial performance.
He also noted that high tax rates and expensive electricity tariffs have historically hurt the sector. He reaffirmed the prime minister's commitment to reviving sick industries and restoring productivity to boost economic growth.
Professor Dercon emphasised that an effective industrial policy should balance protection with incentives to enhance productivity. He underlined the need for a consistent policy framework to help Pakistani industries compete regionally.
He also discussed the impact of customs tariffs on local industries and exports, advocating reforms to support economic expansion. Khan concluded by underscoring the importance of industrial investment for achieving sustainable economic growth.
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