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Boosting growth in a durable way

19 1
21.01.2025

Pakistan’s economy remains trapped in a low-growth equilibrium despite improving macro indicators, and according to International Monetary Fund Managing Director Kristalina Georgieva, lower-income countries, despite reform efforts, are in a position where any new shocks would hit them ‘quite negatively’.

Oil prices climbed about two per cent to a four-month high last Monday based on expectations that wider US sanctions on Russian oil would force buyers in China and India to seek other sources of supplies.

Ms Georgieva said most countries should adopt reforms to boost growth durably, adding that, in many cases, this could be done while protecting their growth prospects.

If globalisation weakens, the developing countries that rely on exports for economic growth and job creation will be adversely affected, says Zeeshan Hashim, executive director of the independent, London-based Policy Research Institute. In the case of global value chains, he argues that reliance on multiple countries makes it impractical and counterproductive to focus on a solely balanced trade relationship.

Govt doubles down on efforts to increase export earnings as sole reliance on remittances becomes increasingly unsustainable

To diversify the risks, he adds, regional trade can serve as a valuable alternative. Regional trade can stimulate the creation of new industries and sectors, facilitating sustainable growth and........

© Dawn Business