Pakistan has the potential to become a global economic player. It’s a powerful vision which can be realised if there is a focus on economic growth and implementing the vital reforms needed to stimulate and underpin growth, a representative for the UK Government signalled today.
Speaking at the Karachi School of Business and Leadership, Mark Lowcock, the UK government’s senior most aid official, told business leaders and students that countries succeeding in today’s global race are those reforming the fastest to generate growth and reduce poverty.
Lowcock said, “Pakistan has everything it takes to be a successful, thriving, prosperous Islamic democracy.”
“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,” he stated
Citing examples from across Asia and Africa, Lowcock pressed that Pakistan’s stake in the global economy, and future investment potential, could be transformed. It has enormous potential for trade, he added. Population dynamics mean that over the coming decades it could reap a demographic dividend, if the economy develops in a way that creates jobs for all young people, he said. Lowcock stressed elections as an important watershed in embedding an inclusive political system, emphasised the importance of greater transparency in public operations, and 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,” Lowcock 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,” he said further.
Lowcock said Pakistan needs to invest in its best asset, which he said were its own people, especially in health and education, to build human capital. It is also critical to promote women’s participation in the economy, he said. “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,” he added.
He 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, he said, involves reforming the trade regime to make it more open to the world and providing the infrastructure necessary for an important trading hub.
Pakistan could potentially become the UK’s largest development programme globally. DFID has made a commitment to expand its support here, potentially reaching 200 billion rupees over 4 years.
