Research at PIDE: Key Messages
Review growth strategy to reorientate the role of the government. Initiate debate on the subject to keep growth strategy informed of the new research on economic growth which argues for the role of government to be the development of growth promoting institutions. Improve governance for sustained economic growth. Governance and growth are intrinsically linked. Poor state of governance and unsatisfactory performance of a host of institutions are the binding constraints on growth in Pakistan. Enforcement of property rights and contracts requires an efficient and impartial legal system. Quick and fair dispensation of justice is necessary for individuals to feel secure in possession of their properties and investments. Revamp the public sector and establish productivity incentives. The priority reforms include: a recruitment process in favour of specialists; monetisation of perks; and performance-based promotion system. Improve the regulatory structure through greater autonomy, no interference from the ministry, and professional hiring, instead of relying on retired bureaucrats.