ISLAMABAD: President and CEO of the Bank of Punjab Zafar Masud has called for a shift from conventional to ‘welfare GDP’ to help citizens cope with economic challenges.
Addressing the Islamabad Policy Research Institute (IPRI) on ‘Measuring Welfare-GDP Beyond Arithmetic’, Masud mentioned that Pakistan’s headline GDP grew by 18.8 per cent during the last five fiscal years.
He, however, said that after accounting for population growth, the increase fell to 9.6 per cent.
Masud pointed out structural weaknesses in the labour market, noting that around four people depend on a single income earner, while labour force participation stands at only 45 per cent.
Masud said Pakistan could draw cautious optimism from countries such as Argentina, Greece and Sri Lanka, which had experienced deeper economic crises but succeeded in gradually reducing inflation.
Citing the UK, US and Sweden, he said sustainable prosperity was built over time through an “anchored compact” of credible rules that reduce the cost of capital and raise living standards.
He proposed five broad reforms: moving beyond the stabilisation trap through transparent fiscal accounting; directing capital towards high-return sectors such as agriculture, SMEs and capital markets; improving productivity to compete globally; ensuring long-term policy predictability; and promoting inclusive growth through job creation and fair wages. –Agencies
