ISLAMABAD:Chairman Pakistan Hitech Hybrid Seed Association(PHHSA) Shahzad Ali Malik on Sunday emphasized that adopting new approaches to governance, business regulation, and trade has the potential to increase output by 4 percent within two years while also aiding in emissions reduction efforts.
Speaking at a discussion on “ What Reforms badly needed for Pakistan” arranged by Mian Affan Elahi Arain Director Marvel Cables Limited, he said several emerging market and developing economies face threats to economic growth and limited policy space due to high inflation, rising debt, and balance of payments pressures, said a news release here.
These challenges mounted during the pandemic and were further intensified by Russia-Ukraine conflict.
He said slower growth and constrained capacity to support their most vulnerable people expose some of these countries to substantial social instability risks and the same time, these economies face the conundrum of participating in global efforts to reduce their carbon emissions and help combat climate change without sacrificing growth and jobs.
Amid such challenges, economy-wide reforms give policymakers the tools to foster growth and prepare for the green transition, he added.
Shahzad Ali said fresh an enduring IMF recommendation for spurring growth—can quickly materialize even under severe economic strains, provided reforms are properly prioritized and sequenced.
“These reforms are key to facilitate the decarbonization of economies”, he remarked.
He said significant structural impediments continue to hinder growth in emerging markets and developing economies.
These stem from a range of issues, including weak governance, due to government ineffectiveness, political instability, and corruption.
He said reducing excessive regulation to make it easier for people to open and run a business is also one area with substantial room for improvement, particularly in low-income countries.
Shahzad Ali Malik Sitara-I-Imtiaz success hinges on how reforms are prioritized, sequenced, and bundled.
Major changes addressing critical constraints to economic activity, such as reforms to improve governance and business regulation, and to reduce restrictions to trade and access to foreign capital, can deliver rapid output gains by promoting domestic and foreign investment and enhancing labor productivity.
He said by front-loading these gains, well-designed reform packages could help overcome resistance to major changes and garner public support, including for the green transition.
Given the extensive development needs of emerging markets and developing economies, it is crucial that decarbonization efforts be accompanied by sustained economic growth, he added.
Lowering trade barriers can expand access to low-carbon technology and facilitate technology transfers that are critical for the green transition in less technologically advanced countries, he added.