ISLAMABAD, Dec 21: The continuous dependence of Pakistan’s economy on cotton and the lack of skilled work force and innovative ideas, depth and diversity has put the country’s economy in a constant threat of collapse in the free trade regime.

These apprehensions were voiced by experts at the concluding session of the three-day 21st annual general meeting and conference of the Pakistan Society of Development Economists here on Wednesday.

“Cotton-based industries served Pakistan well in its early stages of industrialization. However, in this process the economy became too much dependent on cotton sector that is not a growing one in the global economy,” said Rashid Amjid, Director Policy Planing, Employment Sector of the ILO, Geneva, while delivering the Iqbal memorial lecture.

He said the time had come to break this low equilibrium trap and develop new skills in the light of the changing global circumstances. He emphasized the need for improving the quality of technical and vocational training, dignity at work and respect for workers’ rights.

Mr Amjid recommended regulatory reforms in the labour market.

Dr Talat Anwar of the UNDP and Centre for Research on Poverty Reduction and Income Distribution, Islamabad, in his paper argued that poverty could not be reduced unless we reduced deep-rooted inequality in the socio-economic structure of the country.

Delivering the Quaid-i-Azam memorial lecture on “The green revolution and the gene revolution in Pakistan: policy implications”, Prof Robert E. Evenson of the department of economics, Yale University, USA, said Pakistan was successful in achieving the green revolution in wheat and rice.

It had improved food situation in Pakistan despite rapid population growth. In fact, the overall performance of Pakistan in adopting the green revolution was the best in South Asia, he said.

However, he said, Pakistan could not achieve the gene revolution that was based on genetic engineering techniques and used to produce high-yielding crops at low cost. Pakistan could not achieve the gene revolution due to absence of food and environmental safety regulations required for the purpose.

Speaking on “Reforms productivity and efficiency in banking: the Indian experience”, Dr Rakesh Mohan, Deputy Governor Reserve Bank of India, said the impact of Indian banking sector productivity on the rest of the economy was very positive.

He said banking sector reforms in his country and trends in productivity and efficiency in the banking sector had played a major role. Deregulation has brought positive changes in banks’ productivity.

The session was presided over by former State Bank of Pakistan governor Dr Ishrat Hussain.

Dr Mohan said financial development was positively related with economic growth. Comparing Indian banks with those in other countries, he said real deposit and loan growth of Indian banks were noticeably higher than in other Asian countries like China and Korea.

He underlined the role of technology in productivity and efficiency improvement. However, he said, technological penetration in India was found to be modest and there was room for improvement.