Shamshad says country has potential to become major economic player

KARACHI: Pakistan has the potential to become a major economic player, but major economic reforms and a technological revolution are needed, said the caretaker Federal Finance Minister Shamshad Akhtar.

In her virtual address on the second day of the 7th Future Summit, she said that Pakistan lags behind regional countries due to flawed policies over the past 30 years.

The caretaker Federal Finance Minister informed Pakistan’s foreign reserves have crossed $7 billion, up from $4 billion, reflecting the caretaker government’s focus on economic stability and implementation of the IMF program.

According to a World Bank report, the economy of Pakistan can reach up to USD 2 trillion by 2047, from USD 350 billion today. It needs the formulation and implementation of sound economic and sector route policy and our determination to pursue challenging structural reforms. Pakistan needs more innovation and diversity in the economic structure for sustainable growth.”

She stated the tax-to-GDP ratio has stagnated around 10-11% for years, compelling dependence on domestic and foreign loans. The government is revamping FBR systems to improve tax collection through technology.

Moreover, she said that identification of tax evaders and non-filers would be easier with technology and the incumbent government would take assistance from NADRA to expand the tax base.

In her virtual address, H E Jane Marriott, CMG, OBE, High Commissioner of the UK in Pakistan asserted climate change is the biggest challenge. She stressed business leaders to look at the solutions. “I want to assert that climate literacy is essential, especially the involvement of business leaders in understanding the aftermath and the role they can play,” she said.

Jehanzeb Khan, CEO, FINCA Microfinance Bank Limited said, “The women representing 50% of the population must be represented. There has been a steady rise from 10% to 13% but we will have to mirror how a society looks like, that bank branches are not dominated by men.”

Sagheer Mufti, COO HBL said, “There is a huge target market in the rural areas of Pakistan, HBL’s recent initiative for the agri sector enables a large population to gain financial independence.”

Dr Moeed W Yousaf, Vice Chancellor, Beaconhouse National University said, “If we have to deal with what is coming, we must look at things through the economic security lens. Unless Pakistan has economic security, the country will always end up being the proxy battleground for great powers.”

Muhammad Aurangzeb, President & CEO, HBL said, “Private sector needs to lead Pakistan out of the issues we are grappling with. We need to talk about the Charter of Business and fundamentally review our business models.”

Gen Zubair Mahmood Hayat (Retd) said, “The biggest impediment to the Big Picture is the deficit of imagination. If you imagine Pakistan from the prism of elite and status-quo there will not be a Big Picture but if you imagine it from the hearts of the people of Pakistan, you will have that.”

Speakers concluded the biggest obstacle is a lack of imagination and status quo mindsets. The summit forged a spirit of collaboration to transform Pakistan’s future trajectory.

Copyright Business Recorder, 2023