The government should give special focus on agriculture and manufacturing sectors to ensure sustainable economic growth and food security in the country, said a report on State of The Economy.
THE REPORT "STATE OF ECONOMY: Challenges and Opportunities" has been launched by Lahore based Institute of Public Policy (IPP) before the budget 2008-09 to attract government's attention towards some important economic issues. Six renowned economic experts of IPP, which included, Sartaj Aziz, Shahid Javed Burki, Dr Pervez Hassan, Hafiz Pasha, Ayesha Ghaus Pasha and Dr Akmal, have prepared the report.
The report said that the government has to give priority to agriculture and manufacturing sectors, adding that Pakistan had lagged seriously behind in improving the agriculture sector on technological basis. The report also suggested for research and developments works to be carried out by private sector to boost the agriculture sector.
"Other plank of the strategy for developing the real sector of the economy is to encourage the growth, modernisation and exports from small and medium sized enterprises," the report added. The report suggested for a determined effort to mobilise tax revenue from segments of society whose contribution to tax revenues has come down sharply and those who escape the tax net, improving incentives for savings and discouraging luxury consumption. It recommends for expanding the safety net for the poor by allocating at least Rs 50 billion to minimise the impact of rise in food prices.
The IPP report said that efforts should be made for strengthening decentralising by devolving governance and expenditure from the centre to provinces and from provinces to local governments.
Besides, it added, education must be expanded to all levels by improving the quality of public education up to secondary level and increasing outlays for research and development especially for agriculture research and extension.
Commenting on the report, IPP Chairman, Shahid Javed Burki said that the country's current state of economy was the consequence of neglecting promotion export industry and establishment of employment generation industry as well as paying no heed to analyse the global economies since decades.
IPP Vice Chairman, Dr Hafiz Pasha stressed the need for improving revenue collection system and stressed the need for boosting agriculture sector. IPP Executive Member, Pervez Hassan said that Pakistan's economy was once again in critical juncture, and there was dire need that priority was given to macro economic imbalances, poverty reduction and export market to boost the economy.