ISLAMABAD: Local and international experts came together in a panel discussion titled, ‘Developing a Resilient Economy: Fostering Digital Innovations in Agriculture, Textiles, and Beyond’ organised by the SDPI for Sustainable Development Conference on Tuesday.

The discussion began with the issue of Pakistan being at a critical economic crossroads as the country grapples with an ongoing financial crisis and rising debt.

SDPI Executive Director Dr Abid Suleri said the idea of Pakistan needing a financial cushion had been raised multiple times during the past sessions but with debt already soaring, were there other solutions to aid Pakistan in the pursuit of achieving Sustainable Development Goals (SDGs).

He also shared the perspective that the international financial system had largely failed to support vulnerable countries like Pakistan.

UN Resident Coordinator and Humanitarian Coordinator in Pakistan Mohamed Yahya gave a presentation titled ‘Let Pakistan Breathe’, in which he responded to the points raised by Dr Suleri.

Pakistan's current fiscal picture is dire, he said, adding that the country’s annual financing needs for achieving the SDGs stood at $54 billion, yet over half of the national budget is consumed by debt servicing.

He said that only six per cent of the total annual budget of Pakistan was allocated for development projects, adding that, “the country is borrowing nearly $147 million a day to cover these obligations”.

 Mr Yahya proposed a radical solution, saying, “a five-year debt standstill is the only way to finance the SDGs in Pakistan”.

With the country’s debt servicing consuming 51 per cent of its budget, he argued that without immediate financial relief, Pakistan would struggle to fund essential development goals such as education, health and infrastructure.

The panelists also brought attention to the inefficiencies in Pakistan's public sector.

Former State Bank of Pakistan governor and ex-finance minister Dr Ishrat Hussain pointed out that it was not the need for finance rather the deep-rooted governance issues that plagued the country.

“Throwing money at problems after they occur is not the solution,” he said, adding that the real problem lies in the misallocation and mismanagement of resources.

He said during his tenure, when $1 was allocated to education, 81 cents were lost in the bureaucratic process before it reached students who were the targeted population for the funds.

Dr Hussain said funds meant for education and health were being lost in administrative costs, such as salaries with very little reaching the beneficiaries.

He said the primary problem lied with the lack of accountability and the poor governance.

Sharing the example of the time when Pakistan had local governments with mandate of 12 departments of the federal and provincial governments, he said tax collection as well as public satisfaction rates were much higher.

The panel also discussed the role of technology in Pakistan’s future economic development.

Dr Hussain warned that technology should be seen as a tool to improve lives, not an end in itself. “Technology can be both beneficial and disastrous, depending on how it’s channeled,” he added.

Dr Jing Huang, Economic Affairs Officer, United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), India, shared examples of how technology had improved lives but had also caused difficulties, especially for farmers who could not transform their processes to automated processes fast enough.

Dr Jordanka Tomkova, Senior Digital Transformation and M&E Adviser, Innovabridge Foundation, Switzerland, offered a tempered view on technological advancement, acknowledging the importance of a phased approach.

“Immediate automation will only displace labour, which often causes resistance to reforms,” she said. Instead, she suggested that Pakistan should adopt a more gradual transition, focused on stimulating innovation and enhancing competitiveness in key industries.

She said that it’s better for Pakistan to build on what it already has instead of starting something anew.

In her concluding address, Minister of State for Information Technology and Telecommunications (MoITT) Shaza Fatima Khawaja said agriculture was the backbone of Pakistan’s economy and we need to bring together data from multiple institutions of the country to find out areas where technical advancements can help them.

She said: “I can comfortably say that we have embarked on this national journey where agriculture will be a priority.”

Even in SIFC ambit, agri-tech has done phenomenal work, she said, adding that some highly efficient startups were also coming up in this sector across the country.

“Our history is related to agriculture and it is imperative to make our agriculture industry resilient,” she added.