LAHORE: Repeated economic stabilization measures in Pakistan, including exchange-rate adjustments, privatization, and liberalization, have significantly transformed the country's economy but have also contributed to rising poverty, according to economic experts. Speaking at the inauguration of the 8th International Conference on Applied Development Economics in Lahore, Dr. Shahid Chaudhry, Rector of the Lahore School of Economics (LSE), emphasized that national development concerns necessitate high government spending, which shapes Pakistan's economic policies. He also noted that state-led healthcare and social protection efforts highlight the complex challenges and opportunities in strengthening public welfare systems, underscoring the importance of scholarly research platforms in identifying sustainable, inclusive development pathways.
According to Lahore School of Economics, addressing the structural weaknesses of the national economy, Dr. Azam Chaudhry, LSE Professor and Dean of the Economics Faculty, pointed out that Pakistan's economic growth has increasingly reached a ceiling due to limited export performance. He identified weak investment by local firms as a central factor in this stagnation, driven primarily by information failures, credit constraints, and coordination failures that impede domestic businesses from expanding and competing in international markets.
The conference also showcased empirical research on human capital, social reforms, and migration as key components of development. Dean Yang, a professor at the University of Michigan, highlighted the role of remittances from international migrants as vital income insurance for vulnerable households during economic shocks, with non-migrant families often sending members abroad as a coping mechanism.
Addressing domestic policy impacts, World Bank economist Kate Vyborny presented findings indicating that digitizing and centralizing land records in Punjab increased women's inheritance of parental land from 13% to 22%. Additionally, researchers provided evidence that early-life exposure to Pakistan's 2010 floods caused long-term losses in children's health and cognitive development, while interventions in child marriage education and expanded access to local higher education significantly improved female enrollment, grade progression, and long-term socio-economic outcomes.
The three-day conference, held from August 17 to 19, 2026, is organized by the Centre for Research in Economics and Business and the Innovation and Technology Centre at LSE, in collaboration with the International Growth Centre and the Consortium for Development Policy Research.