Baker Institute Scholar Mahmoud ElGamal,
left, talks with Adnan Mazarei of the International Monetary Fund.
Pakistan’s economy faces a complex set of problems according to Adnan Mazarei, assistant director of the Middle East and Central Asia Department and mission chief for Pakistan at the International Monetary Fund (IMF).
During a recent talk at the Baker Institute, Mazarei discussed a range of issues, ranging from a standard balance-of-payments problem triggered by the meteoric rise of oil prices from 2003 to 2008 to the severe economic problems due to power outages that prevent industry and households from managing their economic activities properly. (The importance of restoring normal functioning of Pakistan was highlighted in October, when Secretary of State Hillary Clinton pledged U.S. support for the Pakistani electricity sector, in an effort to expand U.S. support beyond narrow security issues.)
Mazarei also noted briefly the obvious correlation between poverty rates, economic difficulties, and the rates of violence by region in Pakistan (this graph and table illustrate his point), thus echoing Mrs. Clinton’s implicit agreement that geopolitical and security problems cannot be addressed without addressing economic concerns.
Visit the IMF Web site to learn more about IMF’s work with Pakistan, one of the organization’s high-priority countries.
Mahmoud El-Gamal is Rice University’s chair of Islamic Economics, Finance and Management and a professor of Economics and Statistics. He is also a Baker Institute Rice Scholar, a member of the Rice faculty who has made significant contributions to the work of the James A. Baker III Institute for Public Policy.