Energy and food security are the two major challenges that Pakistan's economy is confronted with, which is the outcome of less attention towards agricultural growth and 'circular debt' in case of power shortage. The Deputy Chairman Planning Commission and Chancellor of the Pakistan Institute of Development Economics (PIDE) Sardar Aseff Ahmad Ali here stated this on Tuesday.
While addressing a seminar organised by PIDE entitled "Global Financial Crises" he said that the energy shortage in the short-run has been accentuated by the problems of 'circular debt' and disconnection between our policy makers and planners, whereas less growth in agriculture were instrumental in price hike of essential food items.
He said that the handling of monetary policy post-2000 that many believe is responsible for our current core inflation of the previous regime was neither pro-poor nor productive. He said that this strategy failed to benefit the people. It ignored the agriculture sector where the majority of the people live and work. It was consumption rather than investment and production-led. It therefore turned out to be unsustainable, he added.
He said that these policies were aimed for rich and upper middle class who not only affected the poor but also badly destructed agriculture and infrastructure. He said that the dominant global economic paradigm is under serious threat in the face of unprecedented financial crises and developing countries after high oil and commodity prices cannot remain unaffected by this financial crunch. Vice Chancellor of PIDE, Dr Rashid Amjad said on this occasion that a research for a new development paradigm to steer Pakistan's future growth is a pressing imperative.
He said that research is always remaining at the heart of PIDE's activities and provide the life-blood to its current post-graduate programme, as to the undergraduate programme to be launched in 2010. He said that we are facing the issue of rising poverty - the extent of this rise and what safety net measures need to be put in place to protect those most affected and the vulnerable groups.