The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) recently launched a new initiative aimed at tackling Pakistan’s economic challenges head-on: the National Economic Think Tank (NETT). Spearheaded by prominent figures such as Gohar Ejaz, former caretaker Commerce Minister, and S.M. Tanveer, head of the United Business Group (UBG), this think tank represents a decisive step toward addressing Pakistan’s economic hurdles. Its formation marks the beginning of a strategic journey to achieve substantial, long-term economic growth through visionary policies and effective public-private partnerships.
Objectives of NETT:
The NETT aims to achieve ambitious goals, including driving the implementation of Vision 2030, which sets a target of 10% annual GDP growth and increasing Pakistan’s exports to $100 billion. Such goals reflect a deep understanding of the current economic landscape and a clear determination to shift the nation’s trajectory toward prosperity. The think tank consists of 40 experts from various industries, pooling their expertise to tackle key issues like policy consistency, investment barriers, and energy crises.
One of the most significant milestones outlined during the launch was Pakistan’s slow export growth. Over the past 11 years, exports grew only from $23 billion to $27.5 billion, which Gohar Ejaz labeled as a result of inconsistent policies. He stressed that with a steady 10% growth, Pakistan’s exports should have reached $60 billion by now. By aiming for an export target of $100 billion, the NETT clearly seeks to rectify this shortfall and invigorate Pakistan’s international trade footprint.
Leadership and Expertise
A critical feature of the NETT is its leadership, bringing together experienced officials who have navigated Pakistan’s complex economic environment. Former caretaker Prime Minister Anwaar-ul-Haq Kakar chairs the think tank, while Shamshad Akhtar, a former caretaker Finance Minister, serves as CEO. Akhtar’s appointment is particularly noteworthy, as she brings a wealth of financial and economic experience, ensuring NETT operates as an independent and authoritative body capable of identifying national economic challenges and presenting viable solutions.
Bashir Jan Muhammad, who is the chairman of NETT, has pointed out that energy costs are one of the biggest impediments to Pakistan’s economic growth. He emphasizes that addressing rising electricity costs is essential for making Pakistan’s industrial and trade sectors competitive. His leadership within the think tank will likely focus on driving reform in this critical area.
Resolving Economic Hurdles: Power, Exports, and Investment
Among the most pressing concerns raised during the press conference were rising electricity costs and independent power producer (IPP) issues. These problems have long plagued Pakistan’s industries, particularly those reliant on energy-intensive production. S.M. Tanveer, a key figure in the UBG, highlighted the urgency of tackling IPP challenges to alleviate the strain on industrial operations. Given the current cost of electricity, Pakistani industries struggle to maintain global competitiveness, a challenge the NETT seeks to address through policy shifts and reforms.
Shamshad Akhtar further emphasized the need for a comprehensive shift away from subsidies toward incentive-based growth policies. This shift is crucial for attracting investment and fostering an environment where businesses can thrive independently of government support. By focusing on building public-private partnerships (PPPs) and streamlining investment procedures, the think tank hopes to cultivate an ecosystem that encourages innovation, reduces costs, and supports sustainable growth.
Vision 2030 and Export Expansion
One of NETT’s most ambitious goals is to align Pakistan’s economic policy with Vision 2030. This plan outlines bold strategies to increase GDP growth to 10% annually and raise exports to $100 billion within the next decade. Achieving such growth will require not only reforming internal policies but also building stronger ties with global markets and implementing strategic trade agreements.
Pakistan’s export performance has been stunted over the last decade due to inconsistent policy approaches. During the press conference, Ejaz noted that the nation could have reached $60 billion in exports by now if the annual growth rate had been maintained at 10%. These missed opportunities reflect deeper structural issues within Pakistan’s trade and industrial sectors, which the NETT seeks to address. By uniting 40 top experts, the think tank is in a strong position to offer both macro- and microeconomic solutions to revitalize Pakistan’s export sector.
Addressing the Energy Crisis
Energy has always been a critical concern for Pakistan, particularly in the industrial sector. Bashir Jan Muhammad emphasized that the rising electricity costs remain one of the most formidable challenges for the country’s industrial base. Pakistan’s energy grid, heavily dependent on IPPs, has created a pricing environment that erodes competitiveness. The NETT is expected to propose actionable reforms to lower these costs, potentially advocating for a shift in energy policy, moving toward renewable energy sources and improving the efficiency of the existing power grid.
Public-Private Partnerships and Investment-Friendly Policies
The NETT places a strong emphasis on public-private partnerships (PPPs) as a catalyst for growth. According to Shamshad Akhtar, creating an investment-friendly environment is critical for both local and international investors. Historically, Pakistan’s investment climate has been hampered by bureaucratic red tape, inconsistent policies, and a lack of incentive-based systems. By fostering closer collaboration between the government and private sector, the NETT hopes to streamline investment procedures and make Pakistan a more attractive destination for global businesses.
Akhtar also suggested that moving away from subsidies and creating targeted incentives for industries will be essential for fostering sustainable growth. This marks a significant departure from traditional approaches that have relied heavily on government subsidies to prop up industries. By transitioning to a more market-oriented model, the NETT aims to create an environment where businesses are empowered to innovate and grow organically.
Educational Initiatives and the Role of Academia
In addition to economic reforms, Gohar Ejaz announced the formation of a new university in Karachi. This academic institution aims to transform Karachi into an educational hub, a significant step toward boosting human capital development in Pakistan. By bridging the gap between academia and industry, this initiative could provide the skills and knowledge necessary to sustain long-term economic growth.
Ejaz emphasized that the government’s role is not to manage businesses directly but to create a conducive environment where businesses can thrive. His commitment of Rs1 billion toward the development of the university highlights the NETT’s holistic approach to economic development, recognizing that education and human capital are critical components of economic sustainability.
Pakistan’s economic future
The formation of the National Economic Think Tank (NETT) represents a critical juncture in Pakistan’s economic future. By focusing on Vision 2030, the think tank aims to drive long-term growth through public-private partnerships, policy reforms, and investment-friendly strategies. With a leadership team featuring economic heavyweights and industry experts, the NETT has the potential to address longstanding issues like energy costs, policy inconsistency, and export barriers. As Pakistan looks to expand its export base to $100 billion and achieve a 10% annual growth rate, the success of this initiative will be pivotal in shaping the country’s economic landscape.
References
- Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Press Conference, November 2024
- Vision 2030 Policy Documents
- Shamshad Akhtar, Former Finance Minister’s Economic Reforms Agenda
- Gohar Ejaz, Speeches and Statements on Energy and Industrial Growth
