Was this content written or created while at IBA?
No
Document Type
Conference Paper
Publication Date
4-15-2002
Conference Location
Washington D.C. and New York
Conference Dates
April 15, 2002
Series
Faculty Research - Book Chapters and Conference Papers
First Page
1
Last Page
21
Keywords
Reforms, Economy, Macroeconomic stability, Pakistan
Abstract / Description
Pakistan was one of the few developing countries that had achieved an average growth rate of over 5 percent over a four decade period ending 1990. Consequently, the incidence of poverty had declined from 40 percent to 18 percent by the end of 1980s. But the 1990s proved to be a lost decade for Pakistan, Growth in per capita income dropped to slightly over 1 percent. Poverty resurfaced and about one third of the population now lives below the poverty live of $1 per day. Social indicators are worse than other countries with comparable income. The country was turned into one of the heavily indebted countries and was declared as one of the most corrupt country in 1996. The challenge facing the government which assumed power in October 1999 was to put the economy back to its pre 1990 track. The strategy for economic revival pursued since December 1999 was therefore designed to include four key elements (1) restoration of macroeconomic stability and Pakistan’s relationship with the international financial institutions (IFIs), (2) structural reforms to remove distortions (3) improving economic governance and reviving key national institutions, and (4) poverty alleviation. Why have these four elements been chosen as part of the strategy? The main consideration was to include these elements which come to grips with the legacy of the 1990s, maximize achievement of the strategic objective i.e. economic revival and promote synergies and mutually reinforcing complementarities. The interconnection between economic growth, poverty reduction, structural reforms and improved governance is fairly strong in case of Pakistan
Recommended Citation
Husain, I. (2002). Economic reforms and macroeconomic management in Pakistan (1999–2001)., 1-21. Retrieved from https://ir.iba.edu.pk/faculty-research-series/195
