Pakistan has potential for strong economic growth till 2030: study

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FAISALABAD, Dec 03 (APP)::Pakistan has potential for
achieving strong economic growth till 2030, provided it
successfully overcomes five major constraints it is facing
currently.
The study, conducted by the Research & Development Department
of Faisalabad Chamber of Commerce and Industry (FCCI),
said that the country’s GDP purchasing power is expected to
rise to a level of over $2600 billion by 2030 with a potential
to overtake Thailand.
Giving details of this study titled ‘Pakistan’s Economy
in 2030 – Learning From The Past’, Engineer Ahmed Hasan, former
vice president FCCI, and chairman FCCI Standing Committee on R&D,
said that Pakistan’s per capita GDP purchasing power is also
expected to double by 2030, with a potential of rising from
$5145.7 in 2016 to $10941.2 in 2030.
He said that this study was conducted by Research Associate
Muhammad Ali Hasan, who has been working with Ahmed Hasan as an
economist after completing his graduation from LUMS.
Continuing, he said that these projections only represent the
economic growth potential of the country; however the actual
economic growth will depend on a variety of factors including
possible future economic shocks and the policies adopted by the
government in the coming years.
He said that the report had also identified the key issues
that need to be addressed in order to ensure that Pakistan
achieves its economic growth potential. Among these include
institutional instability and corruption, high public debt and
fiscal deficit, low value addition in agriculture, lack of
innovation and diversification in the manufacturing sector and
low emphasis on human capital development.
“The elimination of these constraints through expedient
policies would ensure macroeconomic stability, strong institutions, openness to trade, and human capital development,” he said,
adding that a sharing of the benefits of growth is essential to
create an environment conducive for achieving sustainable and
inclusive growth in the future.
He said that the government should introduce policies for
fiscal consolidation and ensuring fiscal discipline in line with
the guidelines provided by the FRDL Act 2005. “A key step for
achieving this fiscal consolidation is a broadening of the
tax base to increase tax revenues, which will help the government
to avoid budget deficits thereby, preventing the need to take
further debt,” he said.
The study has also suggested that value addition in agriculture
should be encouraged by increasing awareness among the farming
community regarding the importance of value addition and the
adoption of modern farming technology and methods,” he said and
concluded that at the same time, providing financial incentives
to small landholders to encourage investment in modern agricultural equipment and better farming methods is also imperative.