Eminent speakers at a seminar stated that the current difficulties provided an opportunity to carefully review Pakistan's economy in search of a clear path ahead. The experts gave this important message at the conference on "Challenges for Pakistan's Economy and the Way Forward" organised by the Centre for Aerospace & Security Studies (CASS).

Syed Mohammad Shabbar Zaidi, former chairman of the Federal Board of Revenue, discussed the structural causes of Pakistan's economic problems and why the country has not been able to fix them. He noted that the biggest problem is Pakistan's huge import bill and poor export base, and the lack of women in the workforce also presents significant difficulties.

Zaidi cautioned that if emergency measures, such as reducing import costs, lowering energy costs by closing all businesses and shops by 6:30 p.m., and cutting the administrative costs of the government, are not implemented, inflation may become uncontrollable given that the current rate of inflation is approaching 25%.

Vice Chancellor of Pakistan Institute of Development Economics Dr. Nadeem ul Haque bemoaned the fact that while the International Monetary Fund (IMF) is meant to be a "lender of last resort," for Pakistan it has instead become the "go-to first option," leading to the country's use of 23 IMF programmes over the past 75 years.

He said that the government's large influence on the economy should be reduced since it has over politicised it, and that an inviolable national "Charter of Economy" should be adopted and last for 10-15 years to maintain consistency in policy. In reference to the IMF's most recent assessment of the state of the world economy, Haroon Sharif said while Pakistan is not the only country suffering from growing inflation and an economic downturn, the question is how other countries are addressing their economic crisis.

He said, “in addition to demonstrating to companies that we are serious about reviving the economy and moving toward progressive growth, we must also lower the size of government.”

Director of Economic Affairs and National Development, CASS Dr. Usman W. Chohan emphasised the polycrisis sweeping developing economies, believing that even countries that fared well during the COVID epidemic were struggling in the post-COVID period and that Pakistan is not an exception to the generalised global concerns.

In light of IMF requirements, he offered both short-term proposals and made a case for important fundamental long-term reforms to make the economy really viable. In his closing remarks, President of CASS Air Marshal (R) Farhat Hussain Khan emphasised that Pakistan's de-industrialization in the 1970s was caused by the government's nationalisation policy, which also hurt the development of human resources and ultimately resulted in a high reliance on imports.

As a result, Pakistan lost its industrial base, he added. He emphasised that without a consistent industrial policy, economic stability could not be achieved. There is an urgent need for broad-based national consensus on a long-term and viable economic recovery plan, he added.

Credit: Independent News Pakistan-WealthPk