Islamabad: (Thursday, January 19, 2012) 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.
To have a deeper insight into this political-economic crisis, Sustainable Development Policy Institute (SDPI) is going to organize a Seminar on Monday, January 23. The said seminar will be chaired by Dr. Abid Q. Suleri, the Executive Director of SDPI, while key speakers for the event will feature Dr. Ashfaq H....