ISLAMABAD - Experts at an intellectual discourse highlighted multiple crises facing the country, urging sustained action amidst international economic recession to avert its serious implications affecting the internal drivers of financial instability.
During a Roundtable titled “Addressing Pakistan’s Inflation Woes” at the 26th Sustainable Development Conference organized by the Sustainable Development Policy Institute (SDPI), Dr. Waqar Masood Khan, Advisor to the Prime Minister on Finance, noted that the inflationary situation began with the Ukraine war, causing oil and commodity prices to skyrocket. He emphasized that Pakistan’s inflation, typically at 6% to 7%, reached unprecedented levels in recent years, necessitating discussion. Dr. Khan added that the middlemen’s control significantly impacts inflation due to the vast difference between wholesale and retail markets.
Mr. Ali Rehman from the Prime Institute stated that inflation has remained a primary concern for successive governments in Pakistan. He highlighted that policy and administrative measures to control inflation have proven counterproductive.
Ms. Hiba Zaidi from the International Finance Corporation addressed various sectors, pointing out distinct reasons for high costs or inflation, especially in food and petroleum. She highlighted structural issues and dysfunctional markets, citing around 50% losses of perishables from farm to market.
Dr. Aliya Hashmi Khan from Quaid-i-Azam University focused on monetary policy, emphasizing the importance of decision-making to control inflationary trends.
Mr. Saud Bangash, a representative of the Pakistan Business Council, highlighted economic management as the primary issue while noting the structural nature of the economy’s challenges.
Speaking at the final plenary titled “Pathway to Recovery, Hope, and Resilience,” Dr. Jehanzeb Khan, the Special Assistant to the Prime Minister (SAPM) and Deputy Chairman of the Planning Commission, stressed the need for sustained action to address the country’s complex problems. He mentioned fulfilling commitments in the IMF standby arrangement, stabilizing some indicators, and emphasized the consensus among provinces in the Economic Coordination Committee.
Former Governor of the State Bank, Dr. Ishrat Hussain, emphasized evidence-based development patterns in Pakistan, India, and Bangladesh, advocating for sustained, sustainable, and inclusive growth while caring for the planet and the majority population.
SDPI Executive Director Dr. Abid Qaiyum Suleri highlighted Pakistan’s severe economic challenges since July 2023, discussing risks of default and global conflicts’ impact on world peace. He emphasized the need for innovative approaches, referencing debates about regulating artificial intelligence and the conference theme, “Light at the end of the Tunnel,” aiming to instill hope in Pakistani society.
In a thematic session titled “Rethinking Public Debt Assessment with SGDs Lens: Pakistan in Focus,” Dr. Hamza Ali Malik from UNESCAP, Thailand, stressed the importance of fiscal policy and debt management for sustainable growth. He advocated robust structural development policies for future debt investments aligned with Sustainable Development Goals (SDGs) and national financial stability.
Dr. Mohsin Hassan from the Ministry of Finance highlighted the low GDP growth and high inflation, emphasizing the need for cheaper external financing and reduced domestic interest rates to maintain the balance of payments.
Ali Kemal from SGDs Task Force stressed the importance of ensuring debt sustainability and optimizing external loans to meet SGDs targets while maintaining a 60% debt to GDP ratio.
In a panel titled “Sustainability in the Digital Age: Potential of AI in Pakistan,” experts emphasized the potential of Artificial Intelligence (AI) to attract significant foreign direct investment (FDI) and generate employment. Major-General Hafeez-ur-Rehman (retired), Chairman of Pakistan Telecommunication Authority (PTA), stressed the necessity of developing an AI ecosystem through comprehensive regulatory policies in consultation with experts.
