ISLAMABAD: President Dr Arif Alvi on Tuesday said Pakistan can attain economic stability through reforms, focusing on tax culture, ending corruption and austerity measure to ultimately reduce the widening gulf between rich and poor.
Addressing at a seminar on 'Pakistan Economic Insight: A way forward' here at National University of Science and Technology (NUST), he said financial stability of the country must be in a manner to improve economic conditions of common man.
The President said the government's insistence on financial documentation, tax collection and austerity measures, was justified and also in the best interest of nation.
He regretted that fifty percent of world's wealth was in hands of 100 billionaires, which showed the sorry state of unjust distribution of money, owing to global capitalism.
He called for ensuring equality among people and providing them employment opportunities for better economic conditions.
Dr Alvi said cutting down import of luxury items and checking circulation of black money in market, could also prove helpful in gaining economic stability.
He said corruption was a major factor that discouraged foreign investors, who feared insecurity of their capital.
He expressed satisfaction that World Bank would assist Pakistan under an agreement this year to improve its ranking of ease-of-doing-business, which was a big factor of attracting foreign investment.
To eliminate poverty, the President said there was a need to uplift people through literacy as 200 million remained out of education network in the country. Also, he said provision of good health facilities was important to avoid malnutrition, resulting in stunted growth.
The President said trade within South Asia had the prospects of prosperity for all member countries and mentioned Prime Minister Imran Khan's efforts, soon after assuming office, for strengthening relations with neighbouring India in all spheres.
On trade with India, the President said to handle 'political baggage' was a real issue, adding that mistrust and also ups and downs in bilateral relations impacted business ties.
He said India denied President Donald Trump's statement about Indian prime minister, seeking his mediation on Kashmir dispute, adding mutual issues were to be dealt bilaterally under Simla Accords.
On other hand, the President said India was showing zero intention to resolve the matters including Kashmir dispute on bilateral basis.
He expressed satisfaction that relations between Pakistan and the United States were heading in positive direction and both had convergence of views on peace in Afghanistan.
He said reconstruction phase of war-torn country following the Afghan peace would open trade activity in Pakistan.
He said decades ago, Pakistan had set an example of morality and humanity by embracing a large number of Afghan refugees on its soil, whereas even developed countries these days were closing their doors on migrants.
The President lauded NUST for ranking among world's top 400 universities and for obtaining 35 patents for industry. He expressed confidence that the seminar would act as reservoir of expert opinion by economists to contribute to policy-making.
Adviser to Chief Minister Punjab on Economic Affairs and Planning Dr Salman Shah in his key-note speech on Pak-India trade relations, said the two countries experienced several challenges including tariff and non-tariff barriers, high cost of trade due to logistic difficulties and also lack of infrastructure.
He said $2 billion bilateral trade between Pakistan and India had the potential to touch $30 billion if the governments took steps such as simplification of cumbersome procedures including product registration, making South Asian Free Trade Area (SAFTA) active and sensitizing people of both sides about importance of bilateral trade.
He said border markets could be feasible idea to facilitate traders and encourage economic tourism.
Renowned economist Dr. Ashfaque Hasan Khan said the current 22nd International Monetary Fund (IMF) programme was the toughest for Pakistan and could have been avoided through alternatives such as aggressive import compression policy, floating of sovereign and exchangable bonds, implementation of second phase of China Pakistan Economic Corridor (CPEC), mobilizing more tax revenue and announcing of National Finance Award.
Dr Khan, who is also member of the government's Economic Advisory Council, said even though Pakistan had approached the IMF, there was still a way forward to mitigate its negative impacts by taking steps including reducing discount rate to 9.2 percent by Central Bank so that real interest rate of two percent was maintained.
Freezing to the previous Public Sector Development Programme (PSDP), across-the-board austerity and following a budget deficit reduction path for next three years can also help overcome the daunting financial challenges, he added.
Rector NUST Lt Gen Naveed Zaman said NUST was set to launch a science and technology park this August to bring national and international academia at a platform for quality research.
He said NUST had shared its seven innovations with industry in one year, adding that metal heart stents would be made at cost of Rs 15,000 as compared to the existing market price of Rs 80,000.
The seminar was attended by economists, students, members of civil society and think-tanks.
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