Senate Chairman Farooq H. Naek has said that global economic and financial crisis has exposed the inherent deficiencies in the global system, both at structural and policy levels. He said crisis had severely undermined and damaged the confidence in the global governance system.
He stressed that the extent of multiple impacts of the crisis would require a unified global response, says a message received from Geneva. The Senate Chairman led Pakistan's parliamentary delegation to the Parliamentary Conference on the Global Economic Crisis organised by inter-Parliamentary Union in Geneva on May 7 and 8.
The delegation included Senator Ilyas Ahmed Bilour, Senator Ahmed Ali, Senator Shahid Hassan Bugti and MNA Khurram Jehangir Wattoo. The Senate Chairman said crisis had affected developing countries the most. He suggested that, to avoid recurrence of similar crisis in future, there was a need to understand and analyse the genesis and underlying cause of the crisis to find the right solutions and take right decisions.
He said steps taken by the governments of major economies had raised questions about the resilience and credibility of the market economy. He said that so far the focus had been on providing financial bailouts to pump liquidity into financial markets and to rescue the worst hit industries.
The Senate Chairman emphasised that the macroeconomic policies, particularly of developed countries, should be formulated to stimulate growth and production of domestic economies of developing countries. At the same time, those policies should give due regard to employment generation, socio-economic development, poverty alleviation and provision of education and health, he said.
On reform of the international financial system, the Chairman emphasised the need to overhaul the entire global financial architecture including changes in its structure and decision making processes to make them transparent and inclusive. He underlined that the problem did not lie with the availability of funds but with the condition attached with loans, which adversely affect the trade policies and limit policy space for the developing countries.