RayKalm
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LAHORE: Pakistans economy is resilient and growing with some phenomenal growth in remittances and informal economy, but the people are reluctant to invest due to many reasons including energy crisis.
This was the crux of a panel discussion held under Finance Minister Abdul Hafeez Sheilkh at World Bank headquarter a few days ago. International experts on Pakistans financial and social issues were present at the event.
According to the panellists Pakistan being the second largest country of the South Asian region a great potential to explore.
The World Bank Vice President for South Asia Isabel Guerrero posed two questions to the panel: What inspires you about Pakistan and what is the one shift needed to change the country for the better?
The grace of the people of Pakistan amidst adversity inspires me, Shaikh responded to the first question, and many of the other answers also cited Pakistans resilience in the face of multiple crises. Shaikh noted, Countries that invested in their people, exported their products, and found the right balance between the public and private sector get ahead.
Nancy Birdsall, president of the Center for Global Development, said a culture of philanthropy has helped Pakistanis embrace displaced people and respond to these challenges. She said the country is similar in this regard to the United States, as well as in its tradition of religious moderation.
Mohsin Khan, a senior fellow at the Peterson Institute cited the growth of the middle class - now 70 million out of Pakistans population of about 175 million - the informal economy, remittances from Pakistanis overseas, and the rural economy as encouraging factors.
The most interesting factors are $75 billion consumer spending - almost 40 percent of the countrys GDP; a booming informal economy; and a 70 million strong middle class population out of 175 million total population are amazing numbers when we think about Pakistan as a poor country, he remarked.
Mohisn said around 1.5 million motorcycles and half a million cars are registered each year in Pakistan. Toyota Camry has a price tag of around 35,000 dollars in the US, while in Pakistan it costs 100,000 dollars, and you will see too many these sort of cars running on the roads, exposing the resilience of the (Pakistani) economy.
He said that opinion about Pakistan going down the drain was wrong in a scenario when country was getting $12 billion annual remittances, $4 billion private transfers and $25 billion exports despite the fact that the industrial sector was producing at 50 percent of its capacity due to energy crisis. He said people were reluctant to pump in this money into the economy due to various reasons. Mohsin appreciated that Pakistans migrants had improved their skill level so they were getting higher wages than past so that remittances were growing.
Robin Raphel, senior advisor for Pakistan at the US Department of State said: The war next door in Afghanistan, the 2005 quake, floods in 2010, recession - Pakistan has coped with all these things.
Other speakers focused on the growing strength of Pakistans democracy, while noting the need for stronger political and governmental institutions.
There is a historic and strategic shift happening in Pakistan, Rehman said. A choice has been made ... that we wish to live not just as a democratic country but as responsible global citizens.
Anatol Lieven, a professor at Kings College in London, said the most pressing change Pakistan needed to make was to collect more taxes, and Shaikh said revenue collection has increased 25% this fiscal year.
World Bank panel sees Pakistan
“The most interesting factors are $75 billion consumer spending - almost 40 percent of the country’s GDP; a booming informal economy; and a 70 million strong middle class population out of 175 million total population are amazing numbers when we think about Pakistan as a poor country,” he remarked.
This was the crux of a panel discussion held under Finance Minister Abdul Hafeez Sheilkh at World Bank headquarter a few days ago. International experts on Pakistans financial and social issues were present at the event.
According to the panellists Pakistan being the second largest country of the South Asian region a great potential to explore.
The World Bank Vice President for South Asia Isabel Guerrero posed two questions to the panel: What inspires you about Pakistan and what is the one shift needed to change the country for the better?
The grace of the people of Pakistan amidst adversity inspires me, Shaikh responded to the first question, and many of the other answers also cited Pakistans resilience in the face of multiple crises. Shaikh noted, Countries that invested in their people, exported their products, and found the right balance between the public and private sector get ahead.
Nancy Birdsall, president of the Center for Global Development, said a culture of philanthropy has helped Pakistanis embrace displaced people and respond to these challenges. She said the country is similar in this regard to the United States, as well as in its tradition of religious moderation.
Mohsin Khan, a senior fellow at the Peterson Institute cited the growth of the middle class - now 70 million out of Pakistans population of about 175 million - the informal economy, remittances from Pakistanis overseas, and the rural economy as encouraging factors.
The most interesting factors are $75 billion consumer spending - almost 40 percent of the countrys GDP; a booming informal economy; and a 70 million strong middle class population out of 175 million total population are amazing numbers when we think about Pakistan as a poor country, he remarked.
Mohisn said around 1.5 million motorcycles and half a million cars are registered each year in Pakistan. Toyota Camry has a price tag of around 35,000 dollars in the US, while in Pakistan it costs 100,000 dollars, and you will see too many these sort of cars running on the roads, exposing the resilience of the (Pakistani) economy.
He said that opinion about Pakistan going down the drain was wrong in a scenario when country was getting $12 billion annual remittances, $4 billion private transfers and $25 billion exports despite the fact that the industrial sector was producing at 50 percent of its capacity due to energy crisis. He said people were reluctant to pump in this money into the economy due to various reasons. Mohsin appreciated that Pakistans migrants had improved their skill level so they were getting higher wages than past so that remittances were growing.
Robin Raphel, senior advisor for Pakistan at the US Department of State said: The war next door in Afghanistan, the 2005 quake, floods in 2010, recession - Pakistan has coped with all these things.
Other speakers focused on the growing strength of Pakistans democracy, while noting the need for stronger political and governmental institutions.
There is a historic and strategic shift happening in Pakistan, Rehman said. A choice has been made ... that we wish to live not just as a democratic country but as responsible global citizens.
Anatol Lieven, a professor at Kings College in London, said the most pressing change Pakistan needed to make was to collect more taxes, and Shaikh said revenue collection has increased 25% this fiscal year.
World Bank panel sees Pakistan
“The most interesting factors are $75 billion consumer spending - almost 40 percent of the country’s GDP; a booming informal economy; and a 70 million strong middle class population out of 175 million total population are amazing numbers when we think about Pakistan as a poor country,” he remarked.
