The international ratings agencies are
optimistic about Pakistan’s economic performance and are predicting Pakistan to
emerge as one of the fast growing economies in the world in the coming years”
said Mr. Sartaj Aziz Deputy Chairman Planning Commission while addressing to a
conference on “Redefining prosperity paths in changing global economy:
opportunities and challenges for Pakistan” organized by Pakistan Society of
Development Economists.
Mr.
Sartaj Aziz said that the Real GDP growth was 5.3% in 2016-17 which is highest
in last 9 years due to improvements in energy supply along with security
situation, two key bottlenecks which were holding back the performance of the
economy. Pakistan’s economy has seen noticeable turnaround in last four years
as a result of cumulative impact of macroeconomic and structural reform
program. As a result deficit from 8% in 2012-13 to below 5% in 2016-17 and
brought inflation to a single digit. Mr. Aziz also said that Pakistan
successfully executed USD 1 billion five years Sukuk and USD 1.5 billion ten
years Eurobond transactions at a profit rate of 5.625% and 6.875% respectively and
this reflects the confidence of global investors in Pakistan’s economy.
In
redefining paths for the future Mr. Sartaj Aziz said it is important to
carefully analyze the dramatic changes that are taking place in the world
economy as Economic dynamism has shifted from advanced economies to emerging
markets. While quoting example of Chinese economy he said China is rebalancing
its economy from manufacturing to services, investments to consumption, from
exports to domestic services and this means slower but more sustainable growth
path. Moreover, the major economic powers including US and European Union are
facing structural issues of aging populations, growing debts, weak financial
institutions and global financial crisis which has brought about a shift in policies
that will allow a greater role to the public sector in steering the national
economies.
Deputy
Chairman said due to rapid transformation of the global economic order, it is
necessary for Pakistan to reposition itself in the world economy and Pakistan’s
outlook for economic growth is favorable due to CPEC investments, improved
availability of energy, and growth supporting-supporting structural reforms. He
further said that Pakistan possesses fundamental advantages that can be
harnessed to prepare the economy for leadership role in global economy by
becoming a regional food basket and an engineering hub. Now under CPEC there is
great potential for industrial and agricultural development as both sectors are
major contributors to Pakistan’s GDP. Moreover, nine Special Economic Zones
along with CPEC routes will help both sectors to increase their productivity as
per their potential.
Mr. Sartaj Aziz in his concluding remarks said that we need
political stability, national unity and a sound macroeconomic policy framework
to take full advantage of the opportunities.
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