ISLAMABAD: The effective execution of bold and ambitious changes is critical to ushering in a new age of progress and prosperity for the country. Achieving this goal, however, requires addressing important underlying institutional, governance, and structural obstacles. Dr Shamshad Akhtar, Caretaker Federal Minister for Finance, Revenue, and Economic Affairs, delivered these remarks during her keynote address at the NUST Institute of Policy Studies’ (NIPS) national seminar on “Pakistan’s Economic Crisis: Challenges and the Way Forward,” held on the university’s main campus.
Dr Shamshad Akhtar highlighted five key areas that have increased the vulnerability of Pakistan’s economy to domestic and global shocks: first, unsustainable fiscal policy due to revenue gaps and unproductive expenditure; second, fiscal unsustainable has enhanced government recourse to public debt, which has increased; and third, climate shocks, as the global warming model predicts that Pakistan’s weather patterns will become even more volatile and extreme in the decades ahead.
Dr Shamshad emphasized five critical areas of reform critical to reducing Pakistan’s vulnerabilities and fostering sustainable growth, including: a comprehensive overhaul of the government’s fiscal apparatus required to close the revenue-expenditure gap; addressing structural weaknesses of SOEs and improving their efficiency and functioning, thereby reducing the debt burden; and enhancing competitiveness and encouraging new investment.
During the second session of the seminar, Mr Muhammad Ali, the Caretaker Federal Minister of Energy, Power, and Petroleum, discussed the energy crisis and Pakistan’s energy sector reform. Recognizing the interconnected nature of Pakistan’s power and energy difficulties, the minister emphasized the necessity for comprehensive structural reforms as economic activity has plummeted as a result of import curbs, rating downgrades, and rising interest payments. He stated that a deliberate approach is required to meet the country’s energy needs, as Pakistan relies significantly on gas and oil as primary sources of energy, with industry and transportation consuming the majority of the energy produced.
The event, moderated by Dr Ashfaque Hasan Khan, Director General of NIPS, drew a varied range of attendees, including top politicians, dignitaries, government officials, seasoned diplomats, development professionals, economic experts, academics, think tank leaders, researchers and students. Lt Gen (Retd) Javed Mahmood Bukhari, Rector of NUST, also attended the lecture.
Dr. Ashfaque also provided a full review of Pakistan’s economic predicament. His incisive speech gave a comprehensive explanation of the economic issues that emerging countries, such as Pakistan, face while managing their debt obligations. Dr Khan emphasized the importance of lowering interest rates in order to reduce spending and bring the budget back into sustainable balance.
Additional notable speakers included Dr. Muhammad Khan from IIUI, Prof. Ather Maqsood from NUST, and Mr. Sakib Sherani, CEO of Macro Economic Insights. They discussed important topics related to innovation promotion, political stability, good governance, reforming energy infrastructure, resource indigenization, dialogue as a means of breaking impasses in politics and decision-making, and the restoration of investor confidence.
