ISLAMABAD: Planning Commission Deputy Chairman Sartaj Aziz on Tuesday said the international rating agencies are optimistic about Pakistan’s economic performance and predicting Pakistan to emerge as one of the fastest growing economies in the world in the coming years.
Sartaj Aziz expressed these views while addressing a conference on “Redefining prosperity paths in changing global economy: opportunities and challenges for Pakistan” organised by Pakistan Society of Development Economists (PSDE).
Sartaj Aziz said that the Real GDP growth was 5.3 per cent 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 a noticeable turnaround in last four years as a result of the cumulative impact of the macroeconomic and structural reform program, resulting deficit from 8 per cent in 2012-13 to below 5 per cent in 2016-17 and brought inflation to a single digit.
He also said that Pakistan successfully executed $ 1 billion five years Sukuk and $ 1.5 billion ten years Eurobond transactions at a profit rate of 5.625 per cent and 6.875 per cent respectively and this reflects the confidence of global investors in Pakistan’s economy.
In redefining paths for the future Sartaj Aziz said it is important to carefully analyse the dramatic changes that are taking place in the world economy as economic dynamism has shifted from advanced economies to emerging markets.
Quoting example of the Chinese economy, he said China is re-balancing 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 the US and the European Union are facing structural issues of ageing populations, growing debts, weak financial institutions and global financial crisis which have brought about a shift in policies that will allow a greater role to the public sector in steering the national economies.
The Deputy Chairman said due to the 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 favourable due to CPEC investments, improved availability of energy, and growth supporting-supporting structural reforms.
He further said Pakistan possesses fundamental advantages that can be harnessed to prepare the economy for the leadership role in the global economy by becoming a regional food basket and an engineering hub.
Sartaj said that 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 would help both sectors to increase their productivity as per their potential.
Sartaj Aziz in his concluding remarks said, “We need political stability, national unity and a sound macroeconomic policy framework to take full advantage of the opportunities.”
Earlier in his presidential address, PSDE President and PIDE Vice-Chancellor Dr Asad Zaman said that the global financial crisis of 2007 showed that there is something seriously wrong with the old economy.
He said these problems have even been recognised by the leading economists of the world.
He said that the problem started when morality was dropped from economics although, initially, economics was a moral science.
