Pakistan in dire need of economic reforms

International experts have advised Pakistan that the path to successful economic reforms starts with the ending of restrictions on trade and investment.
A two-day conference on the framework for economic growth, hosted by the Planning Commission and UNDP discussed sustainable growth in Pakistan. In his opening remarks Assistant Secretary General of UN and Assistant Administrator UNDP Ajay Chhibber said Pakistan is currently facing numerous development and economic challenges. “Pakistan needs bold new approaches for sustainable and inclusive development,: he said.
He added that Pakistan has witnessed sprouts of economic growth in the past but it has failed to maintain it over a longer period, whereas other Asian states have managed to retain sustainable growth and development. He said the country could grow a lot because there is immense potential for regional trade.
Deputy Chairman Planning Commission Dr. Nadeem ul Haque said around 68 per cent of Pakistan’s population is under 30 years of age. The size of the workforce is estimated to grow over 3 per cent annually. To employ youth, the economy needs to grow at more than 7 per cent consistently for 20 years. The current strategy of growth focuses on individual projects instead of institutions and policies. The Planning Commission has devised a framework for economic growth to accelerate economic growth and sustain it.
The strategy is based on sustained reform that builds efficient and knowledgeable governance structures, and markets in desirable locations. Presenting his paper on economic reforms in Malaysia, Chairman, Malaysian Industrial Development Authority Sulaiman B. Mahbob said that the Malaysian experience shows that the liberalization of trade and investment regime opens up avenues for investment, growth and jobs.
However, he said strong political support was required to successfully carry out such reforms. He stressed the need to reduce bureaucratic procedures in order to help trade that and attract local and foreign investment. He said that public-private partnership is an important tool for opening up trade as government assurances help attract investment.
National Economic Advisory Council Malaysia Secretary General Norma Binti Mansor said that the Malaysian government has set up a Performance Management and Delivery Unit (PEMANDU) to oversee implementation and assess progress of the economic transformation programme. Malaysia, she said, was implementing six strategic reform initiatives to reform public finance, government’s role in business, human capital development, service delivery, implementing international standards and narrowing down disparities among rural and urban areas.
The initiatives focus on transforming Malaysia into a high income nation by 2020. Associate Professor of George Mason University Philip Auerswald said that the reforms can only take place when a nation is ready to accept them. He said progressing societies create opportunities for their talented people and Pakistan should also do the same. He added that the country has a lot of potential for investment. Speaking on the occasion former Governor State Bank of Pakistan Ishrat Husain said that the government needs to reform the civil service by replacing incumbent generalists with professionals. He added that induction of professionals and meritocracy would make civil servants more competent to resolve the problems of the people.
“Funds are no problem the actual issue is mismanagement in power, education and social sectors,” he said. He stressed that the government should adopt the e-government programme. Giving an example he said that putting all the rules and procedures on the SBP website ended all the discretionary powers of the officials. Chairperson Competition Commission of Pakistan (CCP) Rahat Kaunain Hasan said that they were pursing competition in the country but all their decisions were challenged in the court. CPP has imposed penalties of Rs7.3 billion and 140 cases are in court. “If decisions are not made in a timely fashion then how could the regulatory agencies work” he asked.
The conference brings together around 500 delegates including parliamentarians, international experts, federal and provincial policy makers, economists, development sector leaders and officials from UN agencies from across Pakistan. The conference deliberations focused on civil service and governance reforms, the role of vibrant markets and results-orientation in the public sector.
At the conclusion of the conference on Thursday, the Planning Commission and UNDP will be exchanging a letter of intent proposing the establishment of the Centre for Growth and Development. The centre will contribute towards building institutional capacity to support the implementation of the new Economic Growth Framework.