ISLAMABAD: Experts and policymakers on Monday stressed that achieving sustainable economic transformation required overcoming long-standing structural inefficiencies and ensuring inclusivity.

They had gathered at a seminar on: “Policy Coherence for Economic Transformation,” organised by Sustainable Development Policy Institute (SDPI). The speakers emphasized the urgent need for integrated and well-coordinated economic policies.

Dr Shamshad Akhter, former Governor of the State Bank of Pakistan and Chairperson of the Board of Directors at the Pakistan Stock Exchange, highlighted that policy coherence is fundamental for meaningful economic transformation. She underscored climate change as a major economic risk, citing that Pakistan has incurred costs of $52.93 billion due to climate change since 1992. The devastating 2022 floods alone resulted in $16 billion in losses, further demonstrating the country’s vulnerability.

Dr Akhter stressed that Pakistan’s economic transformation must be underpinned by high-level political commitment and cross-sector coordination. She pointed out that an integrated framework, incorporating climate finance, energy transition, and economic planning, is critical to addressing Pakistan’s development challenges.

Speaking online from United Kingdom (UK), Global Fellow in the Economies of Muslim Societies, Oxford University, Dr. Adeel Malik identified policy coherence, state interests, and governance as key prerequisites for development. He pointed out that Pakistan possesses expertise in policy design but faces challenges in execution.

Dr Malik also warned about the unregulated expansion of housing societies and the elite control over land distribution, terming it a “new tragedy of the commons.”

He stressed the need for land reforms and an inclusive governance structure that prioritises long-term policy stability over short-term political gains.

The seminar concluded with a call for a holistic and well-coordinated policy approach that aligns economic planning with climate adaptation and governance reforms. Experts agreed that achieving economic transformation requires long-term political stability, youth and gender inclusion, and structural economic reforms that address taxation, trade, and industrial growth.

Published in Dawn, February 4th, 2025