The PIDE Reform Agenda for Accelerated and Sustained Growth

Research Reports
Author: PIDE
Publication Year : 2021

To absorb the youth bulge, which Pakistan has, into gainful employment and sustain our high level of debt, PIDE’s estimates suggest that the country must grow at a rate of 7-9% per annum for a sustained period of three decades. We want to emphasize two things at the outset. First, the 7-9% growth rate is not the projected rate; rather, it is the rate required to stay out of the woods. Second, moving to a high and sustainable growth trajectory calls for breaking away from the past, which is possible only if we undertake deep-seated structural reforms in almost all areas influencing growth. This document lays down the reform agenda, pursuing which would put the country on a high and sustained growth trajectory. This reform agenda focuses upon reforming almost every area that directly or indirectly influences economic growth. This includes, to begin with, reforming the functioning of the state itself. The agenda recognizes that investment and entrepreneurial activity cannot happen in markets without an enabling and facilitative role of the government. Thus, the agenda emphasizes reorienting the role of the government to function as an ‘enabler’ in the economy. The agenda focuses upon the medium to long term, and the emphasis of suggested reforms is upon providing a level playing field to all and sundry to encourage a competitive environment, which is crucial for innovation and growth. Therefore the agenda avoids a sectoral approach and refrains from picking a few sectors as ‘winners’ or recommend specific fiscal measures for any sector.