Economy of Tomorrow: Experts call for tax reforms and redistributive policies

Decisions about privatisation must account for consumer and labour welfare

ISLAMABAD:

Given the post-18th amendment scenario, a top-down approach for the formulation of development policies may not be very fruitful, said Hafiz Pasha, former minister for Finance and Economic Affairs, at a special meeting of experts on the “Economy of Tomorrow (EoT)” here on Tuesday. 

The meeting, jointly organised by the Sustainable Development Policy Institute (SDPI) and Friedrich Ebert Stiftung (FES) Pakistan, served as a platform for economists to debate policy matters in Pakistan.

Pasha said that tax reforms have become extremely crucial for Pakistan and there is a need for a more redistributive fiscal policy. The government should focus more on short and medium-term policies aside from the Vision 2025, he stressed. He added that there is a need to further strengthening the network of institutions within the South Asian region.

The decision to privatise on such a large scale should take into account labour interests and the impact on consumer welfare.

Speaking at the occasion, SDPI Executive Director Abid Suleri said that there has been increased willingness from political parties to listen to and deliberate over issues of development. SDPI Deputy Executive Director Vaqar Ahmed said that domestic resource mobilisation in Pakistan would remain a challenge, particularly in the context of social safety nets.

He stressed that the reform process should be undertaken through the government platform.

Nadeem Javaid, Adviser to the Minister for Planning, Development and Reforms, said that, while energy and water security are top priorities for the government, human capital formation is also an urgent need particularly given the country’s demographic structure with over 30% of the population under the age of 30.

Marc Sexer Resident Representative, FES Thailand, said that economic reform and development requires political will.

Philipp Kauppert, Resident Representative, FES Pakistan remarked that the political economic context should be closely considered in the debate for economic growth and reform. He further observed that it is encouraging to note that there is a momentum to build an integrated regional model amongst South Asian countries.

Published in The Express Tribune, February 26^th, 2014.

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