Pasha urges action on economic challenges

Addressing the Conference on Medium-Term Economic Outlook of Pakistan at the Lahore Chamber of Commerce and Industry (LCCI), former Federal Finance Minister Dr Hafeez Pasha highlighted the country’s ability to overcome ongoing economic challenges. He underscored that while Pakistan had endured difficult economic conditions in the past, it had managed to navigate through them. Pasha noted that Pakistan’s average GDP growth over the last four years stood at 2.5%, mirroring the population growth rate. This stagnant income growth highlighted the need for economic reforms. He cited factors such as the impact of COVID-19 and natural disasters like floods as hurdles faced by the economy. Highlighting concerning statistics, Pasha pointed out that over the last 15 years, exports had only increased by 2% annually, while imports surged by 8% to 9% annually. This trend led to a widening current account deficit, which stood at $19 billion in 2017-18, with external debt surpassing $130 billion. Additionally, unemployment had risen to 10.5%, with poverty rates escalating from 33% to 45%.