The
current political impasse between various state institutions is now costing the
macro-economy of Pakistan
in the form of stagnant growth and investment. Several structural issues
require government’s immediate attention which includes power and gas sector
crises, unsustainable losses of public sector enterprises, rising levels of
debt burden and slow progress on tax reforms.  Due to lack of
forward-looking road map government has been unable to build upon and leverage
the rising levels of exports which have primarily ridden on deteriorating
levels of Pakistani rupee and rising global prices of Pakistani exports in the
previous quarter. The balance of payments may soon come under greater pressure
as the time for repayment of IMF dues nears.

This
poor macroeconomic milieu has now implied additional burdens on the poor
segment of the population. This segment has been particularly hurt by
electricity and gas stoppages in the industry, household and transport sectors.
The lack of service delivery not only in infrastructure but also in social
sectors such as health has implied a reduced quality of life.

Going
forward it seems that the government will face some key economic threats which
include: rising debt burden, pick up in global oil prices, reduction in exports
(due to continued energy constraints) and a further free fall in the value of
currency. All these are expected to adversely affect inflation. Sadly due to
the ongoing political and administrative crisis it seems that these economic
issues are not on government’s radar.

ENTRY IS OPEN TO ALL

Chair: Dr Abid Q. Suleri, Executive Director, Sustainable Development Policy Institute (SDPI), Islamabad

• Dr Ashfaque H. Khan, Dean and Professor,
  National University
  of Sciences and
  Technology (NUST)
• Dr Vaqar Ahmed, Head of Economic Growth Unit, Sustainable Development
  Policy Institute (SDPI), Islamabad