LAHORE: The speakers at a conference on Management of the Pakistan Economy, organised by the Lahore School of Economics, have emphasised on the sustainable policies to address the prevailing energy crisis and to support manufacturing sector to boost the country’s economy.
Former State Bank of Pakistan governor and Dean of Institute of Business Administration, Dr Ishrat Hussain, during his address said that Pakistan can become a regional manufacturing hub only through macroeconomics stability and favourable environment. He said that the present positive economic indicators are only short-term, as they are driven largely by high inflow of remittances and borrowed money of IMF and Euro bonds issued with the name of ‘Islamic Sukuk’.
Speaking on the occasion, Dr Robert Wade, Professor, London School of Economics, said that before 1980’s the development was meant as overall prosperity and heavy investment on infrastructure and industry were considered as key drivers. After the mid 1980’s, the economists linked prosperity and economic growth with poverty reduction, humanitarian assistance, primary school education, primary health care, and corruption level.
Dr Hafiz Pasha, Professor Emeritus, Lahore School of Economics, observed that the Gross Domestic Product (GDP) growth rate would be a maximum of 4.3 percent against government’s downward revised target of 4.5 percent in the current fiscal year 2014-15.
Dr Pasha said that growth rate would fall well short of its budgeted target growth rate of 5.1 percent due to sluggish growth of Large Scale Manufacturing (LSM) industries, which is currently below 2 percent. Industrial growth is the engine of any country’s economy, however, it remains below the target and did not pick up momentum, he added.
