Ayesha Saba

Pakistan is facing significant economic challenges, including inflation, fiscal deficit, and a growing debt burden. Amid these pressing issues, experts have consistently emphasized the critical need for efficient resource utilization to drive sustainable resource utilization.

Talking with WealthPK, Mehmood Khalid, former project director of the Center of Excellence-CPEC and Head of the Fiscal Policy section at the Pakistan Institute of Development Economics (PIDE), said a significant concern is inefficient allocation of public funds, resulting in wasteful spending and minimal long-term benefits. Pakistan’s fiscal space remains constrained due to a high debt-to-GDP ratio, large budget deficits, and substantial interest payments on domestic and foreign loans.

Lack of transparency, regulatory inefficiencies, and bureaucratic delays often slow down the much-needed reforms, he said, emphasizing that better governance and financial discipline in power companies, particularly in state-owned enterprises (SOEs), could significantly improve efficiency. He argued that prioritizing productive investments such as infrastructure, human capital development, and technological innovation is essential for sustainable growth.

Kamran Ahmed, Policy Advisor of the All Pakistan Business Forum, said Pakistan’s public sector development programs often suffer from lack of coordination, leading to multiple agencies working on similar initiatives without proper synergy. He argued that such fragmentation has not only increased the administrative costs but also reduced the overall effectiveness of development initiatives.

He suggested that the government should introduce a more integrated approach to planning, ensuring that the resources are directed towards projects that offer the highest economic and social returns. The construction sector, which plays a pivotal role in Pakistan’s economic development, has been a focal point in discussions about resource utilization.

He noted that while the government has launched various housing and infrastructure initiatives, inefficiencies in project execution often leads to delays and cost overruns. He highlighted that the public-private partnerships (PPPs) can be an effective way to optimize resource use. By involving the private sector in project implementation, the government can reduce its financial burden while ensuring better management and accountability.

He emphasized the need for institutional reforms to ensure that the funds are used for the intended purposes. For instance, digital platforms for public procurement and financial management can reduce opportunities for embezzlement and ensure that the resources reach the intended beneficiaries. Pakistan has immense potential; however, lack of strategic planning and inefficiencies in resource allocation have hindered its progress.

Credit: INP-WealthPk