'Country's GDP should grow 7 percent annually'

HASSAN ABBAS

LAHORE: Deputy Chairman Planning Commission of Pakistan, Dr. Nadeem-ul-Haq has said that Pakistan's real GDP needs to grow at an annual average rate of seven percent to provide jobs to the increasing population of our youth. He also said that unfortunately we are unable to maintain our growth rate, which is necessary for our progress. Nadeem-ul-Haq was addressing the "Stakeholders Dialogue on Framework for Economic Growth of Pakistan", organised by Beaconhouse National University in collaboration with Planning Commission of Pakistan, here Monday.

Deputy chairman PC said that developed countries maintain their growth rate for the decades. He also said that better government could be established by following a two pronged strategy, which includes reorienting the role of government, which focuses on an exit from markets and deeper regulation and improving public sector management. This includes reforming civil service, improving resource mobilisation, elimination of untargeted subsidies (particularly loss-making public sector enterprise), efficient public investment though result-based management.

He observed that our growth experience of the last four decades has been volatile annual growth and declining trend in long run growth patterns. In addition, productivity growth has been low in comparison to our competitors. For the last four years per capita income has not increased in real terms while double-digit inflation has prevailed.

Nadeem-ul-Haq said that growth strategy is a new approach to accelerate economic growth and sustainability. It has been developed with world-renowned experts. Our consultants clearly identified the need to develop a coherent approach to growth that goes well beyond projects and target public service delivery, productivity, competitive markets, innovation and entrepreneur-ship. He said that growth strategy is informed by the latest in economic thinking and seeks to strengthen both government and markets. Its " not a government versus market" approach but a "government and markets" approach.

Vice-Chancellor BNU, Sartaj Aziz criticised the policy of IPPPS introduced by the then government in 1994. He said that due to that policy we are facing circular debt and most of the power plants are running on imported oil.