Daily Times

Finance Minister Asad Umar on Tuesday dispelled the notion that Pakistan was facing an economic crisis but said a lot needed to be done.

“The financing gap for the current fiscal year has been plugged and the fruits of government’s vibrant economic policies will soon be visible,” the finance minister said while speaking at the inaugural plenary of 11th South Asia Economic Summit (SAES) held under the auspices of the Sustainable Development Policy Institute (SDPI) here on Tuesday.

Commenting on the recent dollar spike against the Pakistani currency, the minister said that the neutrality of State Bank of Pakistan (SBP) was intact. “We believe in autonomy of the institution whereas there is no change in the government policy.”

He said that the recent decision on exchange rate was made by the central bank, however, there was a need to improve the communication mechanism that was why the SBP governor had been taken on board to devise a communication mechanism in this regard. “If needed, we will further institutionalize the structure and the role of the SBP,” he said, adding: “All economic indicators are improving with exports witnessing an upward trend while imports are decreasing. Current account deficit is also being overcome gradually.”

While referring to ties with India, the finance minister said: “India’s response to Pakistan’s goodwill gesture of opening Kartarpur corridor was unfortunate, however Pakistan was still pinning hopes to strengthen SAARC cooperation in future.”

“We really need to think out of box solutions for regional cooperation amid tensions and confrontations between the two states,” the minister said, adding that intra-regional trade, especially trade between India and Pakistan, was one of the major growth drivers. Stressing the need to create political space for regional cooperation, he said: “It is our inability that we have failed to get people of the region out of poverty. It is a real opportunity for those political leaders, who believe in a peaceful and prosperous South Asia.”

Highlighting the government’s role in promoting cross-regional energy transfer and inter-regional trade, Asad Umar said channelization of non-political forums to build political space for policy making was required for an effective cooperation among South Asian states.

In his address, former caretaker finance minister Dr Shamshad Akhtar said, “The new age of globalization and digitization amid nationalism calls for enhanced regional cooperation and connectivity.

“Connectivity should not be constrained to road development but to have information and communication technology, digitization, energy cooperation and construction of ports, etc. She said sustainable developments goals (SDGs) could guide Pakistan to improve trans-boundary corridor, where institutions like SDPI had a distinct role to play. “Regional connectivity is of course gaining momentum today, where Belt and Road Initiative (BRI) led by China can steer the effort for regional cooperation.”

Dr Shamshad Akhtar said that the BRI had the potential to generate momentum to enhance regional partnership, which was currently in the state of deadlock, especially between India and Pakistan. “Economy needs to progress on a set of new elements of requisite reforms, which include streamlining tax system, improvement in banking system, easing the procedures to do business, improving competitiveness and promoting trade facilitation through trade regulation.”

She said that Pakistan and China could play an active role in regional cooperation and improved connectivity.

SDPI Executive Director Dr Abid Qaiyum Suleri said that when SAARC was unable to move forward, the SAES platform kept the discussion on economy and trade cooperation alive. He said that South Asian countries should keep their political differences aside for the sake of shared objectives otherwise the region would remain least connected.

Nevertheless, Dr Suleri said, “We hope for improved regional cooperation, and opening of Kartarpur corridor is a welcoming step for peaceful co-existence.” He said that in this age of digitization and internet, despite differences, people of both Pakistan and India were still connected through technology. He said technology had brought the two states closer and “we need to strive for re-imagining connectivity, where everyone would have freedom to live and move across borders”.

Dr Nagesh Kumar, head of UNESCAP South and South-West Asia Office, New Delhi, said: “South Asia is today the fastest growing region in the world, however, we need to capture on the development gaps, such as poverty, gender inequality, poor state of health and education, etc. A fresh approach to development is needed where SDGs have the potential to consolidate the unfinished business of MDGs and provide the sustainable future to the people of South Asia,” he said.

Dr Ratnakar Adhikari, executive director of Enhanced Integrated Framework Secretariat, World Trade Organization (WTO), Switzerland, said that it was important for South Asian countries to invent in research and development to capitalize the potential of 4th industrial revolution.

Earlier, Shafqat Kakakhel, the former ambassador and chairperson of SDPI’s board of governors, said that the SAARC platform should not be the victim of political differences and all regional countries should cooperate to resolve mutual and shared challenges such as poverty, climate change, trade, etc.

Published in Daily Times, December 5^th 2018.