Ayesha Mudassar

Sustainable growth requires formulation and implementation of productivity-enhancing reforms which would facilitate a better allocation of resources and hence improve regional and global integration, say experts. Talking to WealthPK, National Productivity Organization (NPO) CEO Muhammad Alamgir Chaudry said Pakistan was witnessing low productivity mainly due to regulatory complexities, lack of technological adaptations, and low level of trade openness.

A long-term growth agenda requires alleviation of the aforementioned distortions to attain sustainable development, Alamgir opined. Dr. Abid Qayyum Suleri, Executive Director SDPI, said the negative trend of productivity was affecting the output of all sectors, including agriculture, manufacturing, and services. Low productivity leads to high input costs and loss of competitiveness in the international market. The reforms recommended by Suleri include encouraging innovation, improving environmental conditions, streamlining regulations, promoting a competition-based economic system, and rethinking the export strategy.

“The adoption of a market-based economy by Mexico and Vietnam’s export diversification strategy has significantly improved productivity for both countries over the last decades,” he added. Dr. Mariam Mohsin, Assistant Professor at the Pakistan Institute of Development Economics (PIDE), told WealthPK, “Despite constituting half of the country’s population, women have a remarkably low participation rate of 21 percent in the current workforce.”

“By equalling the female employment level to the male working participation rate, the country can significantly raise productivity and increase GDP by 60 percent by the year 2025,” said Dr. Mariam. According to the World Bank’s recent report on Pakistan’s economic development, productivity can be considerably increased by reducing deterrents to trade openness and reforming investment laws to attract more foreign direct investment.

Credit: Independent News Pakistan-WealthPk