A Growth and Adjustment Strategy for Pakistan

This paper is divided into four sections. The first provides a quick overview of the current political and economic situation, focusing in particular on the stagnation of growth and deepening macroeconomic imbalances, and a fast approaching balance of payments crisis. The second section focuses on ways to improve macro-economic balances especially public finances not only by increasing revenues but restructuring expenditures including reductions in subsidies to the non-poor and increasing the effectiveness of public spending. The third section focuses on critical elements in reviving growth. The paper argues for a comprehensive growth strategy which focuses on governance as a central issue. Reversing the decline of public institutions and improving the quality of governance will provide confidence in the country's economic future and will result in increasing domestic investment. Other elements of the strategy must involve improving the energy situation; correcting the long neglect of exports and using international trade as a driver of growth (including opportunities that may become available by the intended normalization of trade with India); reversing the decline on growth rate of agriculture both by supporting diversification in the cropping pattern; processing of agricultural products, and more economical use of inputs (especially water); a new push on human development including quality of education in public schools, skills training and a new emphasis on adult literacy; and, a new compact with the private sector that phases out economic rents, reduces the burden of unnecessary or ineffective regulation not excluding labor legislation, and strengthens incentives for investment and productivity improvements especially in moving up the value added chain. Finally, the fourth section presents a summary of key actions that government could take along with a timeline for implementation.

Bibliographic Details

Main Authors:	Burki, Shahid Javed, Hasan, Parvez
Language:	English en_US
Published:	World Bank, Washington, DC 2013-06
Subjects:	AGRICULTURE, ARREARS, AUCTIONS, BALANCE OF PAYMENT, BALANCE OF PAYMENTS, BALANCE OF PAYMENTS CRISIS, BANK ACCOUNTS, BANK BORROWING, BANK FINANCING, BASE YEAR, BONDS, BUDGET DEFICIT, BUDGET DEFICITS, CAPITAL ACCOUNT, CAPITAL FLIGHT, CAPITAL FORMATION, CAPITAL GAINS, CAPITAL INVESTMENTS, CAPITAL REQUIREMENTS, CAPITAL STOCK, CENTRALIZATION, COMMERCIAL BANKS, COMPARATIVE ADVANTAGE, COMPREHENSIVE DEVELOPMENT, CONFIDENCE OF INVESTORS, CONSUMER PRICE INDEX, CONSUMER PRICE INFLATION, CONSUMPTION EXPENDITURES, CREDIBILITY, CRITICAL INFRASTRUCTURE, CURRENT ACCOUNT BALANCE, DEBT, DECISION MAKING, DEMOCRACY, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DEVELOPMENT POLICY, DEVELOPMENT PROJECTS, DEVELOPMENT STRATEGIES, DEVELOPMENT STRATEGY, DIRECT FOREIGN INVESTMENT, DISPOSABLE INCOME, DOMESTIC INVESTORS, DOMESTIC PRICE, DURABLE, ECONOMIC EFFICIENCY, ECONOMIC EXPANSION, ECONOMIC GROWTH, ECONOMIC IMBALANCES, ECONOMIC POLICIES, ECONOMIC RENTS, ECONOMIC SITUATION, ECONOMIC STABILITY, ECONOMIC THOUGHT, ECONOMIES OF SCALE, ELECTRICITY, EVASION, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXPORT COMPETITIVENESS, EXPORT GROWTH, EXPORT MARKET, EXPORT SECTOR, EXPORT SECTORS, EXPORTER, EXPORTS, EXTERNAL FINANCES, FERTILITY RATE, FINANCIAL CONSTRAINT, FINANCIAL CONSTRAINTS, FINANCIAL INSTITUTIONS, FINANCIAL STABILITY, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL POLICIES, FISCAL POLICY, FIXED CAPITAL, FIXED INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, FOREIGN GOVERNMENTS, FOREIGN INVESTMENT, FOREIGN INVESTMENT FLOWS, FREE TRADE, FREE TRADE AGREEMENT, GDP, GLOBAL TRADE, GLOBALIZATION, GOVERNANCE ISSUES, GOVERNMENT ACCOUNT, GOVERNMENT EXPENDITURES, GOVERNMENT PAPER, GOVERNMENT REVENUE, GOVERNMENT REVENUES, GOVERNMENT SAVINGS, GROSS FIXED CAPITAL FORMATION, GROWTH RATE, GROWTH RATES, HOUSEHOLD INCOME, HUMAN DEVELOPMENT, HUMAN RESOURCE, HUMAN RESOURCES, INCENTIVE STRUCTURE, INCOME INEQUALITIES, INCOME SUPPORT, INCOME TAX, INCOMES, INFORMATION TECHNOLOGY, INFRASTRUCTURE DEVELOPMENT, INSTRUMENT, INTEREST PAYMENT, INTEREST PAYMENTS, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL DEVELOPMENTS, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL TRADE, INVESTMENT ANALYSIS, INVESTMENT CLIMATE, INVESTMENT REQUIREMENTS, INVESTOR CONFIDENCE, JOB CREATION, LABOR MARKET, LANDOWNERS, LEVIES, LEVY, LICENSES, LIQUIDATION, LIQUIDITY, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LONG-TERM COST, LONG-TERM LOANS, LOSS OF CONFIDENCE, MARKET SHARE, MICROFINANCE, MOBILE PHONE, MONEY MARKET, NATIONAL FINANCE, NATIONAL INCOME, OIL PRICES, ORGANIZATIONAL STRUCTURE, OUTPUT, OUTPUT RATIO, OUTPUT RATIOS, PENSION, PERSONAL INCOME, POLICY RESPONSES, POWER OUTAGES, PRIVATE INVESTMENT, PRIVATE SAVINGS, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR INVESTMENT, PRIVATIZATION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROVINCIAL GOVERNMENTS, PUBLIC, PUBLIC ACCOUNTABILITY, PUBLIC ASSETS, PUBLIC AUCTIONS, PUBLIC COMPANIES, PUBLIC ENTERPRISES, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEWS, PUBLIC EXPENDITURES, PUBLIC FINANCES, PUBLIC INVESTMENT, PUBLIC POLICIES, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SECTOR INVESTMENTS, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SPENDING, PUBLIC WATER SUPPLY, PUBLIC-PRIVATE PARTNERSHIP, PUBLIC-PRIVATE PARTNERSHIPS, RAPID EXPANSION, RATE OF GROWTH, RATE OF INVESTMENT, RATES OF INFLATION, REGULATORY AGENCIES, REMITTANCES, REPAYMENT, REPAYMENTS, REPUTATIONS, RETURN, ROADS, RULE OF LAW, SETTLEMENT, SMALL BUSINESSES, SOCIAL DEVELOPMENT, STATE ASSETS, STATE BANK, STRUCTURAL PROBLEMS, TAX, TAX COLLECTION, TAX COLLECTIONS, TAX POLICY, TAX RATE, TAX REVENUE, TAX REVENUES, TAX SYSTEM, TAXATION, TERRORISM, TIMELY PAYMENTS, TRADE BALANCE, TRADE DEFICIT, TRADE POLICY, TRADING, TRANSPARENCY, VALUE ADDED, WAGES, WITHDRAWAL, WITHHOLDING TAXES, WORLD TRADE,
Online Access:	http://documents.worldbank.org/curated/en/2013/06/19311558/growth-adjustment-strategy-pakistan https://hdl.handle.net/10986/17856
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