Structural reforms imperative to achieve 6.7 growth by 2023: Khusro Bakhtiar

ISLAMABAD, March 18 (APP):Federal Minister for Planning, Development and Reform Makhdoom Khusro Bakhtiar Monday said structural reforms were imperative to pace up economic growth and take the Gross Domestic Product upto 6.7 by 2023.
Addressing the launching ceremony of World Bank Flagship report on “Pakistan@100”, he said if the country continued the business as usual, the growth would remain around 4.5 percent by 2023, however, with structured reforms it could be project at 6.7 percent and put economy on sustainable growth path.
The minister said it was the resolve of the incumbent government to bring about structural reforms, which were needed for sustainable growth and promotion of businesses.
He said the role of government was to create enabling environment for private sector businesses.
He said the government was one of the players of economy with 20 percent stakes, however it had duty to facilitate the other 80 percent by providing enabling environment.
He said the government was focusing on promoting knowledge-based economy and had been creating linkage between academia and industry besides focusing on competitiveness, value addition and agricultural export promotion.
He was of the view that the human capital development was significant contributor in progress and prosperity of any country as human capital contributes 65 percent in growth of high income countries and 40 percent in low income countries.
Khusro said no country could grow without energy security, and the government envisages maintaining 20% reserves and promoting clean green energy by utilizing renewable energy sources.
He said no country could grow with accumulated consumption level of 93 percent, saving of 10.1 percent and standing at 137 number in ease of doing business.
He said the upcoming five year plan envisaged bringing down the consumption level from 93 percent to 83 percent and lifting savings from 10.1 percent to 17 percent, besides promoting ease of doing business.
He said the population growth from 1998-2017 remained at 2.4 percent and was targeted at 1.8 percent during last five year plan. However, he said it remained around 2.2 percent adding that the incumbent government envisaged bringing it down to 1.8 percent.
He said from 2008 to 2013, GDP growth rate remained around as 2.8 percent, however 6.9 million jobs were created throughout this inconclusive growth, adding around 4.7 growth rate was achieved during last five years but job creation was only 5.7 percent
He said regional equalization development strategy would be featured in five year plan, adding he was optimistic that Pakistan would achieve more progress than indicated in the World Bank report.
If peace restored in Afghanistan and the region, Pakistan, due to its geo-strategic importance, would be able to expand the radius of business activities not only in regional but also in central Asian economies.
He lamented that SAARC, which could have helped promoting regional economic growth, had been made hostage by Indian belligerent attitude, expressing the hope that collective wisdom would prevail to promote regional growth.
Addressing on the occasion, South Asia Region World Bank Group Vice President Harwig Schafer said Pakistan economy had bright future and the potential to grow at 8%.
He, however, was said Pakistan needed to manage its population, otherwise the situation could not change even by 2047.
He also stressed the need for investing on human capital and promoting bank of knowledge for sustainable development.
The World Bank vice president said there were many countries with same outlook, which have achieved progress, adding transparency and accountability prerequisites for sustainable growth.
He said the government should also reduce state intervention in the to let it determine its future.
Highlighting the importance of promoting regional trade, he said it had great potential.
He said Pakistan and the World Bank were working together since 1947 and this journey would continue, expressing the hope that Pakistan would become middle income country by 2047.
Japan International Cooperation Agency Vice President, Takao Toda highlighted the importance on investing on human resources which would bring about economic prosperity.
World Bank Group Country Director Patchamuthu Illangovan presented salient features of the world bank report and highlighted the importance of investing on children and women, besides promoting private sector, boost exports and improve governance for the sustainable development.