Economists stressed the need for ensuring good governance, better macroeconomic management, strengthening institutions and evolving prudent policies which are main drivers and can break the vicious circle of economic logjam.
Prominent speakers include Shahzad Ali Malik, President LCCI, Dr Rashid Amjad of the Pakistan Institute of Economic Development (PIED), former Chief Economist Planning Commission, Dr Pervaiz Tahir, World Bank former Head, Abid Hassan, leading Economist, Dr Akmal Hussain, Energy sector expert, Munawar Baseer, top industrialists, Almas Hyder and Rehmat Ullah Javed. The programme was organised by the Lahore Chamber of Commerce and Industry (LCCI) here on Tuesday.
Senior Economist, Dr Akmal Hussain said the country was facing severe economic crisis. He warned that Pakistan is heading towards three-digit inflation if immediate improvement in governance is not ensured with cut in expenditure and substantial increase in revenue. Former World Bank Executive, Abid Hassan said that the institutional decay has now started taking its toll and the government should take appropriate measures, on emergent basis, to stop this decay.
He said that with every passing day the country is sinking deeper into economic mire. The government should concentrate on tax collection and controlling unnecessary expenditures. Until and unless these two measures are not taken, the economy would not recover. Dr Rashid Amjad of PIED said that the present day doom and gloom scenario could be changed by overcoming the acute energy shortage. The issue of circular debt needs to be taken care by those who are sitting at the helm of affairs. PSDP has a multiplier effect on the employment and economy, he said adding that it should not be slashed.
Former chief Economist Planning Commission, Dr Pervaiz Tahir blamed the political chaos for economic woes and termed the dictatorship democracy cycle as mother of all ills. Energy sector expert, Munawar Baseer, ex Executive committee member Almas Hyder and LCCI President Shahzad Ali Malik and Rehamt Ullah Javed while appreciating input provided by the economists said that all the issues and challenges being faced by the country are more in the political domain.
The political leadership while realising the sensitivity of the situation should come up with a solution with close co-ordination with the chambers. The policies are being made in isolation without the consultation of real stakeholders and that's why the economic situation today has become more complex and directionless. The speakers said that the business community should be involved for the sake of correct decision-making.
They urged the government to evolve a more realistic and pragmatic framework by putting an end to inter-provincial disparity and the disparities within the province. The government should redo its priority list and concentrate on few areas that come on the top of that priority list. It is very unfortunate, they said, that the country has become the most inhospitable for both the local and the foreign investors mainly due to security reasons. "Our inability to reach a consensus on water issue and inability to tap hydrocarbon potential of Balochistan has virtually pushed us to the wall," they added.