OICCI organized a session on Pakistan Economy – Current Challenges and Outlook. Dr Farooq Pasha, Economist MENAP, Standard Chartered Bank, Adil Dalal, Head Financial Markets, Standard Chartered Bank and Samiullah Tariq, Head of Research and Product Development, Pakistan-Kuwait Investment Company (Private Limited) were invited to enlighten the audience on the Macroeconomic update and Energy Sector Issues. The purpose of this session was to develop an understanding about the current economic challenges and how OICCI members can help address those issues.

Welcoming the guests, Kashif Shafi, Executive Director, OICCI, shared that economy is a matter of concern for everyone including the foreign investors. Therefore, this session is organized to have input from the experts.

Discussing about the challenges, the speakers shared that as Pakistan economy grows beyond it potential of around 3-4% growth, the deficit start rising which dry up foreign exchange reserves and therefore, we land back into a lending program. Increasing circular debt in power and gas need immediate attention. Continuity of the IMF program is necessary as Pakistan has a history of discontinuing the IMF program before maturity. Debt restructuring and other measures may provide temporary relief, however, we need to roll out deep structural reform that include broadening the tax base, opening energy markets for private sector, privatization of DISCOs, easing the regulatory environment and keeping fiscal expenditure under the check to control fiscal deficit are the key to put economy on the path of sustainable growth.

The session ended with an engaging question and answer session in which members shared their thoughts and asked for clarification on several critical area. Closing the session, Kashif Shafi, thanked the participants and speakers for an enlightening session.