Islamabad, Feb 3: Experts and policymakers on Monday stressed that achieving sustainable economic transformation requires overcoming long-standing structural inefficiencies and ensuring inclusivity. The Sustainable Development Policy Institute (SDPI) held its Monday Seminar on “Policy Coherence for Economic Transformation,” emphasizing the urgent need for integrated and well-coordinated economic policies.
Dr. Shamshad Akhter, former Governor of the State Bank of Pakistan and Chairperson of the Board of Directors at the Pakistan Stock Exchange, highlighted that policy coherence is fundamental for meaningful economic transformation. She underscored climate change as a major economic risk, citing that Pakistan has incurred costs of $52.93 billion due to climate change since 1992. The devastating 2022 floods alone resulted in $16 billion in losses, further demonstrating the country’s vulnerability.
Dr. Akhter stressed that Pakistan’s economic transformation must be underpinned by high-level political commitment and cross-sector coordination. She pointed out that an integrated framework, incorporating climate finance, energy transition, and economic planning, is critical to addressing Pakistan’s development challenges.
READ MORE: PCDMA Chairman Urges FBR to Conduct Awareness Sessions on SRO 55(i)/2025
Speaking online from United Kingdom (UK), Global Fellow in the Economies of Muslim Societies, University Oxford University, Dr. Adeel Malik identified policy coherence, state interests, and governance as key prerequisites for development. He pointed out that Pakistan possesses expertise in policy design but faces challenges in execution.
Dr. Malik also warned about the unregulated expansion of housing societies and the elite control over land distribution, terming it a “new tragedy of the commons.” He stressed the need for land reforms and an inclusive governance structure that prioritizes long-term policy stability over short-term political gains.
Dr. Ali Salman, Founder and Executive Director PRIME critically assessed “Udaan Pakistan,” a recent economic framework aimed at revitalizing the economy. While he acknowledged its significance in recognizing Pakistan’s economic challenges, he pointed out the lack of strategic interventions to achieve its goals.
Dr. Salman noted that the framework identified taxation and trade tariffs as key barriers but lacked clarity on implementation. He also praised the government’s shift away from import substitution policies and stressed the need for privatization and a reformed tax regime.
The seminar concluded with a call for a holistic and well-coordinated policy approach that aligns economic planning with climate adaptation and governance reforms. Experts agreed that achieving economic transformation requires long-term political stability, youth and gender inclusion, and structural economic reforms that address taxation, trade, and industrial growth.
The SDPI reiterated its commitment to fostering dialogues that lead to out-of-the-box solutions for Pakistan’s economic future.Dr. Zafar-ul-Hassan Almas, Joint Chief Economist, Ministry of Planning emphasized that climate change poses the biggest threat to Pakistan’s economic stability. He urged the integration of the National Adaptation Plan into Pakistan’s economic framework to mitigate climate risks.
He also highlighted the Five Es framework, which focuses on social sector development, particularly in education. He stressed the need to enhance this aspect, as education is crucial for long-term economic sustainability. Additionally, he pointed out that affordable energy access remains a key pillar of economic transformation.
In his closing remarks, Dr Sajid Amin Javed, Deputy Executive Director, SDPI said the government would have to identify its lead sectors that would drive the economic transformation, policy cohesion and enable economic or livelihood opportunities to ensure inclusive economic development.
“The people-centric macroeconomic policy is the only way forward as the best economic governance model driving policy coherence is essential to start journey towards inclusive economic transformation and end gaps between macro and social policies of the country,” Dr Amin said.
The government should remain open to appraisals and criticism on its economic transformation framework to ensure monitoring and evaluation, whereas across the parties political would be critical to achieve the economic transformation, he added.
