For devising an implementation plan for the much touted reform laden New Growth Strategy (NGS), the Planning Commission and the United Nations Development Programme (UNDP) will be jointly hosting a roundtable conference here on July 13-14. The convention will be attended by international experts, parliamentarians, government officials, donors, business community, scholars, and civil society organisations to give their recommendations on the implementation of key reforms identified by NGS.
Challenges in implementation of NGS strategy include major structural reforms required for reforming civil bureaucracy, a level playing field for all in industrial and trade sectors, doing away with licensing and anti competitive practices, and promoting domestic commerce by turning cities into engines of economic growth.
The concept note, circulated for the conference says Pakistan’s long run economic growth has been volatile and has declined due to prolonged macroeconomic instability and lack of structural reforms. It has lagged behind other Asian states in realising its full potential. The per capita GDP growth has declined from an annual average rate of 4 per cent in 1980s to 1.4 per cent in 1990s, and slightly rose to 2.3 per cent in 2000s.
The country is facing many challenges including, high fiscal deficit, that has kept inflation rates at threatening levels, heavily regulated markets, keeping private investment away, and poor productivity of public and private investment leading to a persistently low savings rate. The amalgam of boom-bust growth pattern has deteriorated poverty and inequality levels. There is also an increased vulnerability due to frequent environmental disasters, security problems, energy bottlenecks, and weak implementation of social services programmes.
However, it notes that despite these constraints, opportunities do exist as Pakistan has a young labour force that could be turned into an engine of economic growth. The challenge is to provide this labour force education with opportunity. Regionally Pakistan ended up losing more of its skilled work force to Middle East, Europe and North America. Pakistani diaspora is remitting over $9 billion annually but most of the remittance income is lost to consumer goods.
Pakistan being the fifth largest population in the world must open the regulatory and physical space where upcoming youth can exercise their freedom. With over 3 per cent labour force entering the labour market every year, the government is simply unable to arrange wage employment across the board. The emphasis must shift towards creating opportunities for self employment with better connected and competitive markets, cities, and communities.