PAKISTAN on Thursday made a fresh pitch for international investment and multilateral financial and technical support to help introduce reforms in key sectors of its economy.

Dr Ishrat Husain, prime minister’s adviser on institutional reforms and austerity, asked the international development community to “step up its support to the new government in undertaking much-needed investments in infrastructure, energy and social development sectors” and hoped such investments, underwritten by bold country-owned economic and governance reforms, will bring sustained growth and prosperity to the country.

He was speaking as Governor ad Interim at the concluding session of the annual meeting of Asian Development Bank (ADB) Board of Governors. He said keeping in view the current economic challenges, the development institutions like ADB should not only provide project financing but also support the member countries through enhanced technical assistance and policy-based lending for their reform initiatives to ensure sustainable growth.

Ishrat spells out government’s 11-point agenda to overcome Pakistan’s macroeconomic challenges

“The increase in financial flows would help member countries to pursue economic recovery and to retain the required level of spending on social sectors.

Additionally, the ADB ought to play a role of catalyst in promoting private sector investment flows amongst the member countries besides fostering connectivity and regional trade and reducing vulnerabilities to natural hazards,” he said.

He asked the ADB to help Asian societies absorb rapid change in their economic, social and cultural spheres as they face pressure of multiple and quick transformations. To improve the current situation, faster growth with enhanced integration within the region through capital flows, trade and investment and people-to-people contact was imperative and the development challenges will have to be transformed into opportunities by economic cooperation, technological progress and research to compete in competitive and sophisticated markets.

He reported that the government had adopted an 11-point agenda to overcome the country’s macroeconomic challenges. The agenda included the restructuring of public sector enterprises, power sector reforms and debt management besides the fiscal austerity to reduce fiscal deficit.

The adviser said the government was following temporary monetary policy to check inflation, build foreign exchange reserves to stabilise the exchange rate and promoting exports and incentivising home remittances.

On top of that, the government was also working on promoting growth and raising domestic revenues, rationalising subsidy regime to reduce pressure on the budget and tax administration and policy reform to mobilise domestic resources.

He assured the international community of the strong political commitment and resolve to accelerate the pace of reforms in Pakistan. He said financing 17 goals and 69 indicators under the UN-led Sustainable Development Goals (SDGs) was not an easy job for Pakistan to end poverty and hunger, improving health and education, making cities more sustainable, combating climate change, and protecting oceans and forests.

“Financing these goals is a major issue for developing countries like Pakistan. Lack of coordination, disjunction between different departments and lack of capacity at state institutions are serious impediments in advancing the SDGs,” the adviser said.

As far as the social safety was concerned, he added, the government had allocated $900 million during the year of 2019 for cash grants to 5.7m families.

He asked the ADB to play a role of catalyst in promoting private sector investment flows amongst the member countries besides fostering connectivity and regional trade and reducing vulnerabilities natural hazards.

Published in Dawn, May 5th, 2019