Pakistan needs ‘stable national macroeconomic policy environment’, report says – Pakistan

LAHORE: Pakistan needs a stable national macroeconomic policy environment, avoiding slippage of fiscal targets in the face of vested interests, and ease of doing business.

This was according to the recommendations of the report on “Changing World – Pakistan Reset” by the Burki Institute for Public Policy of the Lahore Chamber of Commerce and Industry.

The report recommended that short-term membership in the ongoing program of the International Monetary Fund be adopted.

An increase in domestic savings and investment rates, broadening of the tax base and modernization of the tax system and achievement of the revenue collection target of 0.7% of GDP through the standard rate of GST of 17% and the minimization of preferential rates and exemptions are essential measures for the way forward to achieve longer-term sustainable economic momentum.

It was also recommended that this public policy be designed in such a way that young people can add to the economic strength of the country. Two sectors have enormous potential, namely information technology and small and medium-sized enterprises. Pakistan must invest in the development of institutions in the public and private sectors to produce a flow of these workers.

The report recommended that virology, surveillance, immunology, vaccine development and social policy, among other topics, should be an integral part of public policy, especially in the health sector, which should be an integral part. of public policy, especially in the health sector, which should be dynamic, forward-looking and flexible to adapt to new developments that arise every day.

The report further recommends greater political and social tolerance and openness to achieve positive peace in Afghanistan, where all people of all ethnicities are content and secure.

A more flexible and accommodating policy of the United States and European countries to settle Afghan refugees could ease the burden on neighboring countries.

Afghanistan could become a partner in a “quad” agreement which would include with itself, China, Iran and Pakistan and including Turkey in the configuration of a “quintet” to respond to the changing environment. globalization and the challenges directly affecting Afghanistan after the Taliban takeover. Recent talks with the TTP could lead to a satisfactory outcome based on integrating dissidents and taking action against those who have committed horrific terrorism-related crimes.

The agricultural sector needs to be restructured to respond to the impact of climate change and further contribute to the country’s economy.

Earlier at the launching ceremony, LCCI President Mian Nauman Kabir said that the theme of this year’s annual report is “The Changing World – Resetting Pakistan” which provides objective analysis of performance. economic, the impacts of Covid-19 on selected social sectors, and Pakistan’s options to reposition itself in relation to the evolution of regional geopolitics.

He said that before the pandemic, the Pakistani economy had just started to stabilize. Unfortunately, the outbreak of the corona pandemic has had a negative impact on the global economy. Pakistan now faces serious economic challenges, including high inflation (11.5%), persistent devaluation of the currency, a relatively excessive policy rate (8.75%), a growing budget deficit, a continued increase in the trade deficit and a contraction of the national economy. “I think there is always a way out of any crisis,” said LCCI president, adding that the country is in desperate need of a path to economic recovery by developing medium and long term macroeconomic policies. . He said we are lucky our country has not plunged into such unmanageable crises.

Mian Nauman Kabir praised the cautious policy of the government which has taken various measures to stop the spread of the coronavirus while keeping the economic damage to a minimum. From full lockdown to smart lockdown, all strategies have brought desired results which have been hailed by the World Health Organization and many countries. The president of the LCCI said that the report calculated the impact of Covid-19 on various social sectors of our economy and proposed certain measures to bring about the improvement in particular of the employability of this workforce which is directly or indirectly associated with these sectors.

Vice-President Haris Ateeq, BIPP Vice-President Shahid Najam, Dr Farukh Iqbal, Aiman ​​Adnan, Lt. General Ghulam Mustafa (retired) and Professor Dr Javed Akram were the keynote speakers who highlighted the need for short and long term policies to ensure the growth potential of the economy. They also set out the critical challenges that need to be addressed to achieve the desired pace of economic growth.

Copyright Business Recorder, 2021

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