Economists Highlight Importance Of Paradigm Shift In Thinking For Pak Trajectory To Development

The 37th Annual General Meeting (AGM) and Conference of the Pakistan Society of Development Economists (PSDE), hosted by the Pakistan Institute of Development Economics (PIDE), in collaboration with Bahaduddin Zakariya University (BZU), began at the Jinnah Auditorium of the university here on Tuesday

MULTAN, (UrduPoint / Pakistan Point News - 21st Nov, 2023) The 37th Annual General Meeting (AGM) and Conference of the Pakistan Society of Development Economists (PSDE), hosted by the Pakistan Institute of Development Economics (PIDE), in collaboration with Bahaduddin Zakariya University (BZU), began at the Jinnah Auditorium of the university here on Tuesday.

Speaking at the inaugural session of the Conference, Dr Nadeem Ul Haque, Vice-Chancellor of PIDE and President of the PSDE emphasized the significant contributions of Dr. Mahbub ul Haq to PIDE and highlighted PIDE & PSDE’s role in asking pertinent questions and engaging in impactful research exploring the country’s wide-ranging socio-economic issues.

He stressed the need for a paradigm shift in thinking and the importance of asking critical questions. Dr. Nadeem said that there is an immediate need to explore solution to challenges such as exchange rates, unemployment, and the aid-debt trap.

The PIDE Vice-Chancellor emphasized the need for attracting investment. He said, in Pakistan, poverty has so far remained the primary concern but added that attracting sizable investment was an area that needs to be given more attention. “Focus should be shifted to investment and finding ways to increase it.”

Dr Nadeem further pointed out that the solution to our economic quagmire is not getting more debt and criticized the over reliance on loans.

Dr Iftikhar Ahmad, the PSDE secretary, reiterated PIDE’s desire to initiate and collaborate on further research with researchers in South Punjab adding that two panel discussions are focusing on South Punjab, featuring panellists from academia and regional centers this year. He highlighted the need for inclusivity by bringing students from all around Punjab to the discussions, which PIDE has been doing for over four years.

The first panel discussion had the theme “Foreign Aid: Boon or Bane?” and it was moderated by Shahid Mahmood, Research Fellow at PIDE, Asad Hayauddin, Former Secretary of the Economic Affairs Division, Tobias Haque, Lead Country Economist for Pakistan at the World Bank, and Naveed Aziz, Senior Governance Advisor to the FCDO.

The moderator said that since 1950, Pakistan has received over USD 200 billion in foreign aid and a significant chunk of it was in the form of loans. Also, a large amount of aid has been “tied aid.” He said that the donor agencies influence major policy decisions.

He also stressed on making cost-benefit analysis of the projects more effective. Despite continued aid programs and projects, the human development indicators of the country remain abysmal, he noted.

Asad Hayauddin remarked that Pakistan needed a home-grown development plan with a clear direction. Pakistan’s strategy had remained focused on external resource mobilization for short-term gains like budgetary support.

Tobias Haque said Pakistan needs to develop a crisp indigenous development plan and then seek donors’ assistance. In such a case, the donors will have very little wiggle room to deny assistance on Pakistan’s terms.

Naveed Aziz, however, said that aid utilization has not necessarily been entirely negative in Pakistan, and aid dependence in some areas has come down as well for example, Pakistan was the largest recipient of Official Development Assistance, which has now come down from 15% to 1%. He said, governments should be efficient user of money.

All panellists agreed that Pakistan needs to develop a long-term development plan with a clear indication of what support it requires from external sources and to what extent. Pakistan’s debt utilization stands as a major issue that has to be immediately improved. Pakistan needs to realize that aid is not the solution to problems, instead, it is just a tool to facilitate the implementation of development plans and achieving the set goals.

The cohosts of PSDE’s 37th Annual Conference, organized by PIDE, include the World Bank Group, UNICEF, RASTA, the Bank of Punjab, Pakistan Poverty Alleviation Fund, Saudi Pak Agricultural and Industrial Investment Company, and BZU School of Economics.