Ishrat for active policies to counter global crisis

ISLAMABAD Dr Ishrat Husain, former Governor State Bank of Pakistan Wednesday said that Pakistan had to pursue active monetary and fiscal policies to deal with the global financial crisis which is affecting our economy.
He was addressing the second day of three-day conference on 'Economic Sustainability in a Globalised World organised by the Pakistan Institute of Development Economics (PIDE).
Dr Isharat Hussain said that the global financial crisis had converted into global economic crisis, which has affected millions of people so far.
Production and growth are faltering everywhere and people are losing jobs which has resulted into poverty. A year earlier no body was expecting such kind of crisis and no one anticipated this and currently no one knows how long this crisis will continue, he stated.
During the second day of the conference four research papers were presented by the economists on institutional imperatives and poverty reduction, production surplus and corporate social responsibility to highlight the key socio-economic constraint in the country.
Speaking on the occasion, Vice Chancellor PIDE Dr Rashid Amjad said that the main objective of the conference was to focus on the ways and means to increase economic growth during the recent global financial crisis.
He said that food security and fuel were the main issues being faced by the world economies and their price fluctuation creates problems for developing economies. We would share the expertise of the foreign economists to develop strategies for sustainable economic growth in the country, he added.
Siddiqur Osmani, Professor of Economics, University of Ulster UK, said that Growth process must be inclusive in nature. Idea of inclusive growth is linked with pro poor policies and with equity. He said all countries of South Asia have enjoyed growth.
He was of the view that if compared with 1970s the growth estimates have shown great change. Faster growth has accompanied with poverty reduction in Pakistan, India and Bangladesh. There is a new kind of trade-off between equality and productivity. Dr Osmani said that in India and Pakistan growth process is inclusive. In Bangladesh and Sri Lanka there is greater inequality. He further said poverty and equality are in opposite direction in these countries.
Talking about the economic challenges to Pakistan, Dr Hafiz A Pasha Eminent economist said that Short time ago, the foreign exchange reserves of Pakistan was sharply declined, currency was depreciating, high inflation, high trade deficit and Pakistan was almost near to bankruptcy. The panel of economists prepared completely independent report that looked at the Short-term macro economic framework, Social protection strategy and development strategy and Institutional framework for development.
We recommended for the service sector tax and increase in excise duty and for the support of new emerging industries, which definitely not like by the IMF and the government should imposed broad based regulatory duty on non-essential imports.
He said price of flour has increased by 42 per cent only in one year in the agricultural country and the prices of rice have also shot up. The previous government did not do any thing for the agriculture sector he added.
Shahab Khawaja, Secretary, Industry and Special Initiatives while chairing the session on Trade and Industry said that electricity, gas shortage and of skilled labour are causing Pakistans productivity to be 67 per cent less than China.
He also pointed out that country facing the security problems, lack of technology, research and development and marketing. More severe problem is growth in population. According to him 3 million peoples are increasing every year.
The speakers are participants of the meeting praised the Pakistan Society of Development Economists to arrange such gathering of eminent economists to discuss important issues concerning to the economy.