LAHORE: Professor Stefan Dercon, a professor of economic policy at the Blavatnik School of Government and the Economics Department at the University of Oxford, says the current structure of the Pakistani economy distorts the allocation of resources, stifling productivity growth.

Speaking to the local industry leaders at an event organised by the Bank of Punjab (BoP), he highlighted the anti-export bias of the policies and the need to move the economy away from import substitution towards export-led growth.

Prof Dercon is leading the ‘Committee on the Home-Grown Economic Plan’ for the Pakistan government and advising it on developing and implementing a medium-term reforms agenda that will support economic growth through higher international trade and greater private sector participation for job creation and poverty alleviation.

He is engaged with key stakeholders at the highest level of policymaking to review the strategic economic plans of the government and incorporate international best practices.

These reforms will support the economic stabilization policies outlined by the government in the IMF EFF (Extended Fund Facility) agreement.

Mr Dercon stressed the need for corrective actions to improve the investment climate, boosting private and foreign investments in the economy.

The author of ‘Gambling on Development: Why some countries win and others lose’, also highlighted areas of critical reforms for the economy, sharing examples of successful policy implementation in other developing countries and lessons for Pakistan.

He said the government policy must take into account the distributional consequences of measures and factor in risk mitigating measures on implementation constraints and political economy challenges.

BoP CEO and president Zafar Masud shared the details of the work being undertaken, including the implementation plan and the economic impact assessment by Mr Dercon with the government.

Published in Dawn, July 23rd, 2024