At a high-level policy forum on Wednesday, experts called on the International Monetary Fund (IMF) and other global finance lending institutions to prioritize relief measures for fostering growth in Pakistan, taking into account the challenges faced by the general public and the current economic conditions of the country.
The forum, titled “Prosperity for Pakistan: Reforms for National Economic Growth,” was organized by the Sustainable Development Policy Institute (SDPI) in collaboration with the United Nations Development Programme (UNDP) and the World Bank (WB).
In his opening address, Dr. Samuel Rizk, the Resident Representative of UNDP Pakistan, emphasized the significance of this high-level dialogue, which centers on Pakistan’s economic trajectory. He stressed the need for Pakistan to prioritize macroeconomic stability, debt recovery, and enhanced revenue generation for its prosperity. Dr. Rizk highlighted that Pakistan has been significantly affected by global macroeconomic challenges, the COVID-19 pandemic, and the Ukraine-Russia war.
Dr. Rizk further emphasized that Pakistan’s economic vulnerabilities are escalating from risk to threat, underscoring the necessity for sustainable economic policy initiatives. He stressed that achieving economic revival and improvement requires cooperation from stakeholders and the international community.
Dr. Shamshad Akhtar, former caretaker finance minister, highlighted the imperative for Pakistan to undergo extensive transformation for economic sustainability. She emphasized that inclusivity and climate resilience are essential components of the prosperity agenda. Dr. Akhtar emphasized the need for macroeconomic stability, emphasizing the importance of robust processes and significant revenue enhancement, alongside a focus on diversifying revenue sources to align with economic growth objectives.
She underscored the necessity for Pakistan to reduce both domestic and external debts while enhancing its taxation footprint and productivity to stimulate economic growth.
Dr. Abid Qaiyum Suleri, the SDPI Executive Director, emphasized that the recommendations put forward by the experts align closely with the domestic agenda aimed at improving the economic landscape of the country. He stressed the need for addressing leakages within the economic system, particularly chronic issues like state-owned enterprises that are detrimental to the national economy.
Dr. Suleri highlighted the urgency of addressing economic compromises, especially towards sectors that evade taxation, as failure to do so could lead to a default-like situation for the country. He also emphasized the importance of advocating for the IMF to consider the impacts of its recommendations on the people of Pakistan during its quarterly reviews, assessing how these recommendations affect the lives of the general population.
Kanni Wignaraja, the UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific emphasized the importance of transitioning to a green economy, stating that it is not a luxury but a necessity in the current context. She pointed out that many Asian countries have already made strides in transforming their transport sectors, reducing subsidies on fuels, and providing incentives for eco-friendly alternatives.
