Arooj Zulfiqar

Experts advocate proactive measures to help mitigate the financial crisis Pakistan is currently facing amid the global economic slowdown. “The global economic downturn triggered by various factors, including geopolitical tensions, trade disruptions and the Covid-19 pandemic, has sent shockwaves through financial markets. Developing economies like Pakistan are particularly vulnerable to the adverse effects of such crises, necessitating swift and effective responses from policymakers,” stressed Azfar Ahsan, former chairman of Board of Investment (BOI), while talking to WealthPK. He emphasised the need for Pakistan to adopt a multi-faceted approach to mitigate the impact of the impending financial challenges. “This approach should include bolstering fiscal policies, strengthening regulatory frameworks and fostering international collaborations to navigate the complexities of the current economic landscape.” He said to build resilience against the global recession, Pakistan must prudently manage its fiscal policies, ensuring responsible spending and effective allocation of resources.

“This involves revisiting budgetary priorities, streamlining expenditures and exploring avenues for revenue generation.” “Additionally, regulatory reforms are crucial to create a stable economic environment. A robust regulatory framework can instil confidence among investors, both domestic and foreign, encouraging sustained economic growth. By addressing issues such as bureaucratic hurdles and ensuring transparency, Pakistan can attract much-needed investments and stimulate economic activities,” he underscored. Meanwhile, speaking at a roundtable titled ‘Addressing Pakistan’s Inflation Woes’, during the 26th Sustainable Development Conference organised by Sustainable Development Policy Institute (SDPI) recently, Dr Waqar Masood Khan, Adviser to Prime Minister on Finance, attributed the onset of inflation to the Ukraine crisis, which led to a surge in oil and commodity prices.

He emphasised that Pakistan should not be singled out in facing this issue, as the country's inflation typically ranged between 6% to 7%. “However, in recent years, it has reached unprecedented levels, prompting the need for a thorough debate.” On the occasion, Ali Rehman from Prime Institute, an economic think tank, said that inflation had consistently been the foremost concern for successive governments in Pakistan. He said that policy and administrative measures to curb inflation have unfortunately yielded counterproductive results. Dr Aliya Hashmi Khan, an economist and former dean of faculty of social sciences, Quaid-i-Azam University, focused on monetary policy issues, saying that decision making was very important to controlling the inflationary trends.

Credit: INP-WealthPk