Shifting focus towards productivity

Poor productivity is the main reason for the huge imbalance in external trade and recurring current account deficits, forcing Pakistan to rely on successive International Monetary Policy (IMF) bailouts, says an analyst who has done extensive research on governance in both the public and private sectors. Enhanced, diversified, value-added goods and services produced at globally competitive prices are required to meet the people’s needs, possibly at affordable costs and create a targeted trade surplus for exports. Productivity growth is essential for raising living standards, reducing poverty, and driving economic development. The need for advancing reforms to raise productivity and competitiveness has also been stressed by the IMF executive board directors who approved the $7 billion bailout.