Lahore: Themes of external vulnerability, energy dependence, and economic growth were at the forefront of discussions during the Lahore School of Economics' Nineteenth Annual Conference on the Management of Pakistan Economy. The two-day event took place amid ongoing negotiations with the International Monetary Fund (IMF) and rising oil prices, posing significant challenges to Pakistan's economy, which relies on imports for 80% of its energy needs.
According to the Lahore School of Economics, the conference opened with an address by Rector Dr. Shahid Amjad Chaudhry, who emphasized Pakistan's vulnerabilities in its negotiations with the IMF due to accumulated foreign debt, the impact of rising oil prices on domestic costs, and the need for long-term reforms in regulation, taxation, and investment. The discussions included an analysis of GDP growth projections and inflation, with the Modeling Lab at the Lahore School estimating a decline in GDP growth for fiscal year 2025-2026 from 3.2% to 1.8% due to the oil price shock.
The conference also explored structural changes in Pakistan's economy, with experts highlighting declining investment in the manufacturing sector and its impact on GDP growth. Discussions pointed to challenges in the labor market, the impact of capital outflows, and the need for improved financial inclusion. The role of Pakistan's Export Development Fund and the potential for industrial policy to address market failures were also examined.
The event concluded with a summary by Dr. Matthew McCartney, who highlighted the themes of vulnerability and resilience, and emphasized the importance of transformative changes such as artificial intelligence, urbanization, and climate change for future conferences.