Experts Emphasize the Need for Structural Reforms

Introduction:

Economic experts gathered at a post-budget conference have underscored the importance of implementing structural reforms and finding native solutions to achieve sustainable economic growth. They argue that relying heavily on international lending agencies alone will not be enough to lift the country out of its economic challenges. Key issues such as the balance of payments and fiscal deficit need to be addressed through professionalism in public policy making and the entry of competent human resources. The conference, organized by the Institute of Chartered Accountants of Pakistan (ICAP), brought together experts in Karachi, Lahore, and Islamabad to discuss the way forward for the economy.

Chronic Structural Issues:

In his keynote address, Dr. Khaqan Hassan Najeeb, a senior economist and public policy expert, highlighted the chronic structural issues troubling the country’s economy. He stressed the importance of addressing the balance of payments and fiscal deficit, which have become persistent problems. Dr. Hassan called for professionalism in public policy making and emphasized the need for competent human resources in the public sector. He also emphasized that while completing the IMF program is necessary, it alone cannot ensure economic stability. Structural reforms are crucial to prevent recurring balance of payments crises, and attention must be given to the financial struggles of state-owned enterprises (SOEs), which have decline the fiscal situation.

Reducing Reliance on International Lenders:

Experts at the conference emphasized the need to reduce the country’s heavy reliance on borrowing from international lenders. They called on policymakers to prioritize long-term domestic growth and explore avenues for indigenous solutions. Wamiq A Zuberi, CEO of Business Recorder Group, highlighted the fault lines in the country’s economic structure, particularly the heavy dependence on imports for generating revenue. Zuberi questioned the allocation of a significant portion of the federal public sector development program (PSDP) budget, stressing that development should be the responsibility of provinces after the 18th amendment. He also raised concerns about SOEs and suggested exploring alternatives to their operations.

Boosting Exports and Productivity:

The conference also addressed the challenges facing exports and the need to enhance competitiveness. Zubair Motiwala, CEO of Trade Development Authority of Pakistan (TDAP), expressed disappointment with the budget’s lack of measures to boost exports. He highlighted high utility rates, such as gas and electricity, as major obstacles to regional competitiveness. Motiwala also emphasized the importance of ease of doing business and reasonable utility prices for industrialists. Despite some relief for startups in the budget proposals, Dr. Waqar Ahmed noted a lack of significant structural shifts in tax policies favoring the manufacturing sector.

Conclusion:

In conclusion, the experts’ insights and recommendations at the post-budget conference shed light on the critical need for structural reforms in Pakistan’s economy. Addressing chronic issues like the balance of payments and fiscal deficit, promoting professionalism in public policy making, and focusing on long-term domestic growth are essential for sustainable economic development. The government’s efforts to support exports, improve ease of doing business, and reduce utility costs will play a crucial role in build up the economy. As the country moves forward, a collaborative approach between policymakers, economists, and industry leaders will be vital in implementing effective solutions and achieving economic stability and prosperity.