KP has all potential to become a booming economy: HafIz Pasha

Eminent economist and former federal minister for Finance, Dr Hafiz A Pasha has said that despite challenges to provincial economy at various levels, Khyber Pakhtunkhwa has all the potential to become a booming economy with an exceptional growth rate and record reduction in unemployment provided more focused efforts made to channelize the provincial economy. Despite the challenges like facing heaviest brunt of the war on terror due to huge spending on law and order, confronting with loadshedding 200% more than other parts of the country, Khyber Pakhtunkhwa has shown highest growth rate of economy in Pakistan.
He was addressing at the symposium titled "State of the economy and future priorities", held by Friedrich-Ebert-Stiftung (FES) Pakistan and Sustainable Development Policy Institute (SDPI), here on Friday.
The symposium was clubbed with the launch of two books related to Pakistan's national economy including '"Growth and inequality in Pakistan" by Dr Hafiz A Pasha and "Pakistan's Agenda for economic reforms" by Dr Vaqar Ahmed. The excerpts from both the books were shared with the participants comprising leading economists, representatives from trade and business communities and media highlighting diverse aspects and issues pertaining to state of economy with federal as well as provincial lenses.
Dr Hafiz A Pasha, on the occasion said that it was quite encouraging that Khyber Pakhtunkhwa has achieved highest economic growth in Pakistan. He said that it was quite encouraging keeping in view the fact that population growth rate of Khyber Pakhtunkhwa remained 2.9% as compare to 2.4% of Pakistan. He said that the projection of cost presented by federal government about the "War on Terror" was wrong and it actually amounts about US 226 billion dollars instead of US 123 billion dollars that has been quoted officially. He said most of this cost has been paid by Khyber Pakhtunkhwa.
Dr Hafiz said that CPEC could be a real game changer for Pakistan and Khyber Pakhtunkhwa if implemented properly. However, to actualize its real potential, Western Corridor needs to be focused. He said that at the unemployment rate in the province was still 10% which should be a matter of concern.
He added further that Khyber Pakhtunkhwa has huge potential of generating cheaper energy through small dams which hasn't been availed. Likewise, the crop sector of the province is not performing well and its contribution in provincial economy remained only 7%. He emphasized that the inter-regional disparity within the province also needs to be redressed as more than 20 districts of the province seems left behind in the development and progress.
Dr Vaqar Ahmed, Joint Executive Director, Sustainable Development Policy Institute (SDPI), earlier presented an outlook of national economy and said that the national economic agenda must be aligned with the emerging economic realities. In this regard, he added, instead of embarking towards yet another tax amnesty scheme, government should make utmost efforts to operationalize the cooperation agreements with countries that were signed already, particularly, related to ill-gotten wealth.
He elaborated further that under Article 25(1) of the Avoidance of Double Taxation Treaty with Switzerland for instance, Pakistan could seek information about its nationals that are maintaining financial wealth in former's banks. Hence, a repatriation of this wealth is also possible under the same law. He said that it should be a point to ponder that embarking such amnesty schemes and weakening of accountability laws in the country by providing immunity to certain individuals, could resulted as weakening Pakistan's case with Financial Action Taskforce.
Abdul Qadir while representing FES, highlighted some salient features of both the books that were launched and informed the participants that the work was result of a comprehensive research conducted at various levels.
He said that soliciting suggestions and recommendations from the stakeholders for desired policy actions has always been a critical objective to us.
The leading experts from different sectors of economy including Muhammad Adnan Jalil, Dr Faisal Khan and Dr Adil Zareef also shared their views with the participants and presented various aspects related to economy of Khyber Pakhtunkhwa. The participants said that despite the challenges, key economic reforms were need of hour and must be worked upon jointly regardless of political divides.