Grappling with multiple issues like economic meltdown, climate change and social unrest amid the long lasting impact of the pandemic, developing countries have stalled on their progress on inclusive economic and social prosperity. Countries including Pakistan and the MENA region are highlighted in the IMF’s recent book called, “Promoting Inclusive Growth in the Middle East and North Africa: Challenges and Opportunities in a Post-Pandemic World”.
The book is a testament of the Fund’s increasing focus inclusivity. In recent years, the IMF has increasingly emphasized the importance of inclusive growth, characterized as economic growth that is broad-based and benefits all segments of society. The global lender recognizes that inclusive growth is essential for sustainable economic development and reducing poverty.
The book shed light on key shortcomings of the region that includes Pakistan. Against the overall inclusive growth index, Yemen, Mauritania, and Pakistan are among those that have the lowest inclusive growth scores particularly access the financial inclusion and private sector indices. Less than 15 percent of the poorest population have bank accounts in the MENA region while less than 6 percent have bank loans in Mauritania, Pakistan and Yemen. Similarly, the trio is also among those that. The sub-indices show that Pakistan is also among the emerging markets like Iran, Jordan, Egypt, Morocco, that rank below the average against access to education, in access to health services, Mauritania, Pakistan, and Yemen seem to struggle the most to provide basic health services to their residents.
On the other hand, Morocco, Pakistan, and Afghanistan present the least opportunities for remote work, consistent with their relatively larger concentration of employment in the agricultural sector
Gender disparity among other factors is a crucial component of inclusive growth. Countries that fare poorly on multidimensional gender equality have economic growth and development that is disproportionate and not all-encompassing. In a recently held seminar on the IMF book, it was highlighted that the female labor force participation in the MENA region is the lowest across the globe where the level of development, legal barriers and policy distortions were the key determinants of the labor market.
To promote inclusive growth, the IMF has recommended a number of policies. Investing in education and skills development to increase labor force participation and investment in human capital for a well-rounded productivity. Then it emphasizes the role of private sector. Nathan Porter, Mission Chief to Pakistan at International Monetary Fundin an online seminar held at LUMS Pakistan underscored the need to reduce the state’s footprints in the industries, restructuring or privatizing state owned enterprises, and reducing and eliminating subsidies to certain sector to improve business climate. And growth prospects. The IMF also stresses on the need to improve infrastructure, widening the social protection programs and increase access to finance as ways to reduce gaps in jobs, income inequality, and unequal participation in the economic growth.