Pakistan's 1 Year Growth Strategy @PIDEpk Thread 🧵👇
- Our Long Term Growth, productivity & Investment are declining
- Lowest investment rate in the region
- Our Export trend is flat
- Govt Foot print is 67% of GDP
- Govt has crowded out Market Competition #PakistanAt75
Current Crisis & Constraints:(The Available Policy Choices are limited)
1. No fiscal space available to the govt
2. Increase in public investment is not possible
3. Taxes are high
4. Balance of payment crisis–Highly indebted
5. Rightsizing is required but privatization difficult
Historically, taxation has been the priority & growth has been low on
the list. Need to make growth a top priority & for that focus on investment, productivity & exports.
Focus on the following Bottlenecks for Economic Activities:
1. Sludge
2. Financial
3. Energy &
4. Taxation
Sludge: The cost of regulations
Govt Footprint is 60%–80% of the GDP (A Plethora of Documents)
There are 122 regulatory bodies under the federal govt
Regulations, permissions, NOCs cost more than 39% of GDP in 3 sectors alone.
Pak 1 year growth Strategy pide.org.pk/research/pakis…
Energy: A chronic Problem
Circular Debt Rs 2.5 trillion (April 2022)
Cumulative Losses Rs 5.4 trillion (since FY2007)
Need to focus on Billing & Metering & B2B & Wheeling as top priorities.
#energy #energycrisis #PakistanAt75
Pak growth strategy, Pdf: pide.org.pk/research/pakis…
Pakistan has complicated & distorted Tax structure
Policy does not follow principles of fairness, certainty, efficiency & convenience
Higher taxes, narrow base, differential treatments & exemptions hinder growth & flow of revenue. #PakistanAt75
Pdf: pide.org.pk/research/pakis…
Cities are considered as Engines of Growth, Our Cities need Rethinking.
- Unlock dead capital & create a city wealth fund.
- Vibrant city centers with mixed-use
- city to be managed by a single authority
- allow high-rise, dense & walkable cities
Pdf: pide.org.pk/research/pakis…
Internet is a basic human right, make the internet widely & cheaply accessible.
- internet taxation should be removed
- ensure the availability of cheaper devices
- introduce competition policies based on research & M&E.
Pak 1 year growth strategy: pide.org.pk/research/pakis…
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