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Pakistan Observer

Published Date: Jun 12, 2014

Seminar on state of macro-economy

Economics Department has arranged seminar on “State of Macro
Economy in Pakistan”. The guest speaker of the event was Dr. Vaqar Ahmad,
Deputy Executive Director at Sustainable Development Policy Institute (SDPI)who
has been associated with a number of international. Worthy Vice Chancellor,
Prof. Dr. Samina Amin Qadirchairs the seminar.

Dr. Ahmad started with explaining the historical trends in Pakistan’s macro
economy. He said that Pakistan’s macro economy shows no sign of improvement on
the years. The linear trend of Gross Domestic Product (GDP) has been found to
be negative. In Pakistan inflation has been higher and investment has been less
than the rest of South Asia during the same period. According to his opinion,
this is due to lack of learning in terms of policy making. This was indicated
by fact that the development expenditure is considerably lower than the current
expenditure.

However, the current state of economy is stable owing to the new International
Monetary Fund program. The current wave of privatization and the 3G and 4G
auction have also relieved some pressure from the fiscal side. However, unless
some major policy reforms take place all these factors may result in
counter-productive outcomes. He added that the biggest challenge that is being
faced by Pakistan today is the energy crisis and this may be dealt with through
exploration of new resources and improvement in the existing infrastructure.

Dr. Ahmad was also of the view that in order to pay-off the existing debt and
to avoid accumulating further debt the government will have to undertake tax
reforms to eliminate the system of discretionary tax exemptions. The seminar
was concluded with a very detailed and rigorous question and answer session.
After that Dr. Bushra Yasmin, Chairperson Department of Economics, thanked the
guest speaker and presented the university souvenir to him.

Source: http://pakobserver.net/detailnews.asp?id=244131