EconFest Report

The EconFest organized by the Pakistan Institute of Development Economics was a public-
service event that provided a platform for people to talk, discuss and learn about Pakistan’s
economy and the problems and difficulties it is going through. The conference also provided a
stage for professionals of different disciplines to debate the current economic situation from their
field’s point of view.
DAY 1ov
Corruption vs Incompetence
• Corruption is a lack of morality and incompetence is a lack of skill.
• Both are linked and encourage each other.
• Corruption is the bigger problem as incompetence can be found with corruption, but
corruption is not always found with incompetence.
• Corruption is hard to fix because it can and is hidden, while incompetence is evident.
This lack of transparency is why most corrupt government officials keep getting elected.
• Corruption and incompetence can be reduced but through different routes.
• Taking China’s example, it reduced its corruption levels by offering incentives to
officials that perform well and increasing accountability.
• Reducing incompetence is more of a structural issue of our education sector and if people
are taught the current in-demand skills then incompetence can be significantly reduced
over a period of time.
Perpetual Energy Crisis
• Pakistan has good power stations, but continuous power supply is still a problem.
• Only 68.3% of the country has access to grid-powered energy and 39% does not,
• Problems in distribution: 1) Lack of documentation and 2) no investment in capacity
building.
Sludge: Cost of regulations
• Sludge is the slowing down of economic activity due to the inefficient regulation laws in
government sectors.
• Regulatory permissions cost the economy around 40% of GDP in terms of money and
time.
• The past regulation laws are still in effect, dating back to 1935.
• Regulations should be such which minimize the cost of transaction for the economic
agent.
• Growth is inversely related to cost of transaction.
• To reduce sludge the laws need to be revised; each organization should do the work
which falls under their mandate and institutions should be given enough autonomy to
make independent decisions.
 • Not all sectors need to have tedious amounts of paperwork.
• Authorities should be asking “Why should this be regulated?” as a first step in reducing
sludge.
DAY 2
Cities: The cost of Sprawl
• This discussion highlighted the negative impacts of urban sprawl in Pakistan’s major
cities, such as increased traffic congestion, pollution, and decreased accessibility to
essential services.
• The problem of urban sprawl is prevalent in many cities, leading to similar consequences.
• The rapid expansion of cities and inadequate urban planning has resulted in a lack of
green spaces, increased air pollution, and unequal access to basic amenities, such as
healthcare and education.
• Additionally, the increased reliance on personal vehicles due to inadequate public
transportation infrastructure has led to increased traffic congestion and greenhouse gas
emissions.
• Therefore, policymakers in Pakistan need to prioritize sustainable urban planning and
invest in accessible public transportation to mitigate the negative effects of urban sprawl
and ensure a healthy, equitable, and sustainable future for our cities.
Internet for All
• The "Internet for All" initiative aims to provide affordable and reliable internet access to
underserved communities in Pakistan.
• Internet access is still limited, particularly in rural areas, where many people lack access
to the internet. This digital divide is a significant barrier to economic and social
development, as access to information and communication technology is crucial in
today's digital age.
• The government of Pakistan needs to take necessary steps to increase internet
accessibility by investing in broadband infrastructure and providing subsidies to low-
income families.
• Doing so, we can help bridge the digital divide and promote equitable access to
information and opportunities for all.
• Access to the internet has the potential to transform people's lives, particularly in the
education, healthcare, and employment sectors, making it a crucial goal for Pakistan's
development agenda.
Economic Reform: Now or Never
• This topic emphasizes the need for economic reforms to address Pakistan’s economy’s
challenges, such as inflation, debt, and fiscal deficits.
• Pakistan's economy has been struggling for a long time, and the government has failed to
bring about significant economic reforms.
• Economic reform is crucial for the country's sustainable growth and development.
• The government needs to take bold steps, such as reducing government expenditures,
increasing revenue generation, improving governance, and enhancing the business
environment.
• These measures require political will and leadership, but they are essential to address the
root causes of economic challenges and ensure sustainable economic growth for Pakistan.