Economic challenges: Minister underscores need for structural reforms of lasting nature

ISLAMABAD: Minister of State for Finance, Dr Aisha Ghaus Pasha Monday called for undertaking structural reform to get rid of the boom-and-bust cycle and to deal with external and domestic challenges of low tax collection to achieve long-term sustainable economic growth.

Speaking as chief guest at the launch of “Economic Security of Pakistan- Challenges and Way Forward,” the Minister of State for Finance emphasized the need for structural reforms of permanent nature with the consensus of all the stakeholders and proposed increasing tax compliance and implementation of right taxation policy to achieve economic growth.

She said that it is unfortunate that “we have been unable to general resources even domestically to finance our expenditure needs, which indicate that there is something lacking not only on administration but also on policy of tax.”

She said that sustain path to human security is required in today’s time when wars are not fought with guns and tanks but are fought through other mechanisms and economic mechanisms are foremost and important in these mechanisms. She said that there is a nexus between national security, social security, and economic security.

Therefore, we need to undertake structural reform to get out of the boom-bust cycle and increase tax collection to put the country on a path of sustainable growth and development.

Pasha added that some of the measures taken are strengthening Pakistan rupee, yet there are big issues to curtail imports, repayment, and low-ranking of the country internationally. She said that persistent efforts and reforms are needed to steer the county out of these challenges.

The minister further stated that the recommendations and structural reforms highlighted in the report are very important and must be implemented to ensure the overall economic security of Pakistan. She said that at present, there is no imminent threat of default as the government has secured external financial needs for the year 2023.

Zafarul Hasan, joint chief economist Ministry of Planning, Development and Reforms, in his remarks, emphasized that in order to ensure national economic security, there is a need to develop sustainable economic growth.

He highlighted that owing to multiple factors, Pakistan’s productivity is the lowest in the region. Therefore, he proposed that Pakistan should redirect investment from infrastructure to developing human capabilities.

Dr Abid Q Suleri discussed the economic history of Pakistan and listed some of the chronic, medium- and short-term challenges to Pakistan’s economic security.

He also listed challenges Pakistan is facing.

Dr Suleri emphasized resisting the politicization of economic decision-making and proposed the creation of an “Economic Security Council.”

Earlier, in his welcome remarks, Ambassador Aizaz Ahmad Chaudhry, DG ISSI, welcomed the speakers and shared the idea behind launching the report.

He stated that national security should be measured on a tripod of economic security, human security, and traditional security, and the primacy given to Pakistan’s economic security in the overall national security calculus is a step in the right direction.

In her introductory remarks, Dr Neelum Nigar, Director of CSP highlighted the importance of economic security in Pakistan and proposed that macroeconomics needs to shift from stabilization to sustainability, from consumption to investment, from imports to exports, and from service sector to industrial.

Copyright Business Recorder, 2022