Having the potential to become a global economic player, Pakistan has a powerful vision that can be realised if there is a focus on economic growth and on the implementation of vital reforms needed to stimulate and underpin growth, said a representative for the United Kingdom (UK) on Tuesday.
Speaking at the Karachi School of Business and Leadership (KSBL) Mark Lowcock, the UK government’s most senior aid official, told business leaders and students that countries succeeding in today’s global race were those that were reforming themselves to generate growth and reduce poverty.
“Pakistan has everything it takes to be a successful, thriving, prosperous Islamic democracy,” he said, while adding, “If you develop a clear and shared vision, sustain a long term commitment to travelling the long road of reform, and refuse to be deterred by the problems that will inevitably arise, then you can transform your country within a generation.”
Citing examples from across Asia and Africa, Lowcock said that Pakistan’s stake in the global economy, and future investment potential, could be transformed. It had enormous potential for trade. Population dynamics meant that over the coming decades it could reap a demographic dividend, if the economy developed in a way that creates jobs for all young people, he observed.
Lowcock stressed that elections were an important watershed in embedding an inclusive political system, while emphasising the importance of greater transparency in public operations, and also highlighted the need to broaden the national dialogue on economic reform.
“Pakistan cannot sustain high rates of economic growth without a sufficient, reliable supply of energy…. The sector needs to be put on a more commercial footing, including a regulatory and tariff structure that is attractive to investors,” he said.
“A tax system that collects less than 10% of GDP is unsustainable for any modern country. Without agreement and tangible progress on broader and fairer taxation, Pakistan will be unable to invest in a more prosperous future,” Lowcock added.
Pakistan, he said, needed to invest in its best asset, which was the people, especially in health and education to build human capital. It was also critical to promote women’s participation in the economy, he added. Furthermore, he said that this was an issue of fairness and good governance, but it was also crucially an economic issue.
“Pakistan must take steps to harness private sector dynamism in boosting investment and growth. Inefficient public sector enterprises play too large a role in the economy. They should be reformed or privatised. Bureaucratic barriers to private business need to be reduced and property rights better protected,” the UK official said.
“There are enormous benefits to Pakistan from resuming its historical status as the regional hub between central Asia and south Asia with strong links to the Middle East. This involves reforming the trade regime to make it more open to the world and providing the infrastructure necessary for an important trading hub,” he added.
Moreover, the UK official said that Pakistan could potentially become the UK’s largest development programme globally, adding that the DFID had made a commitment to expand its support here, potentially reaching 200 billion rupees over a time period of four years.
“That is recognition of the importance we attach to our shared ties and heritage because we firmly believe in the ability of Pakistani males and females to improve their own lives. We are confident you can succeed, and that our money can be spent well here,” he said.
Over the coming years the UK aid to Pakistan would focus heavily on supporting economic growth, thus enabling millions of people to access financial services, such as microfinance loans, and providing practical job training to tens of thousands of people living in poverty. In addition the UK aid would help support four million children in school.
On the occasion, Karachi School for Business and Leadership Chairman Hussain Dawood said, “Pakistan is faced with numerous internal and external challenges and one of the ways these can be addressed is by nurturing and grooming its human talent. The best way to do so is by establishing centres of excellence for applied education and training. KSBL is one such example which has been established in collaboration with the University of Cambridge Judge Business School, and has been offering world-class education in leadership and business with a focus on ethics and social responsibility”.
