Statement by Pakistan at the High-level Thematic Debate on The State of the World Economy and Finance in 2012 (New York, 18 May 2012)

We thank the President of the General Assembly and the Secretary General for holding this important High-level thematic debate.

Mr. President,

  1. The global economy is experiencing negative but mutually reinforcing twin challenges of weak growth and low demand. The high unemployment, declining global trade, escalating sovereign debts, and increasing threats to food and energy security are further complicating the challenge of restoring global economic stability. The problems of high inequality and persistent poverty and hunger not only continue but also are the major causes of social unrest and political turmoil witnessed in many parts of the World. We, therefore, remain concerned about the state of the global economy and finance. We are worried that current situation is adversely impacting the ability of developing countries to realise internationally agreed development goals, including MDGs. In many cases development gains made till date are under threat.
  2. We, however, believe that there is no dearth of solutions. The outcome document of the 2009 Conference on the World Financial and Economic Crisis and its Impact on Development identifies a number of measures which if implemented can contribute in improving the global financial and economic situation.
  3. We hope that our deliberations on the State of the World Economy and Finance in 2012 will help us determine why we have not been able to undertake those measures. We also hope that our discussions will not only provide us an opportunity to renew and reiterate our commitment to take effective remedial actions to correct the course but will also generate the necessary momentum to adequately follow up on the 2009 Conference.

Mr. President,

  1. The outcome document of the 2009 Conference contains the way forward including on addressing issues related to trade, debt, global liquidity and aid commitments as well as financial regulation and supervision, and reform of the international financial system to ensure the fair and equitable representation of developing countries in global economic governance.
  2. We have taken some actions including the initiation of the process of reform in the global economic governance and improving the surveillance and financial regulatory environment.
  3. We will, however, like to stress that steps taken so far are not commensurate with the unprecedented challenges. The global economy continues to be fragile and downside risks are still very high. If longstanding systematic issues and fragilities remain unattended, the likelihood of another downturn cannot be ruled out. We, therefore, must take comprehensive actions with needed urgency.

Mr. President,

  1. In this regard, we will argue that no single country has the capacity to deal with the task at hand. Similarly, we believe no ad-hoc mechanisms or decision making in exclusive settings can produce the required results. The last three years have amply demonstrated the limits of this mode of working. We will, therefore, urge that we shall fully employ the potential of the United Nations, the organization that enjoys confidence of all of us and which has delivered whenever was called upon. Lets benefit from its universal membership and legitimacy. Our own indecision and inability to work on the known and agreed solutions must not be used to humble this noble organization.
  2. Secondly, we recognise that countries with different levels of development have different priorities. Our submission, however, is that our efforts towards fixing the global economy shall not be framed through a developing and developed world paradigm. In this globalised world our interconnectedness has made us interdependent. The economic difficulties are no more country or region specific, they are global. We all have seen how countries of different development levels have suffered, in some cases too agonisingly. Addressing our common challenges is, therefore, our shared responsibility.
  3. Lastly, delaying the requisite actions is not an option. According to the latest IMF World Economic and Financial Survey, the growth projections for most regions have been revised down relative to the September 2011 World Economic Outlook. We, therefore, must not wait for another downturn to rudely wake us up from our slumber.

Mr. President,

  1. Pakistan, like other developing countries has suffered the consequences of global financial and economic crisis. The unparalleled floods in 2010 and then again in 2011 have further exacerbated our development challenges. At national level, we have made efforts to curtail the negative impacts through a revised framework for economic growth, reinvigorated rural economy, and strengthened social safety nets such as the Benazir Income Support Programme through which cash transfers are being made to 6 million poor families. We have also made efforts to increase revenue collections while curtailing government spending and rationalising energy tariff structures, in addition to rearranging financial distribution among federating units. We are moving towards more open trade and regional economic integration. At the global level, we expect a level playing field to enhance trading opportunities and increase investment inflows. We also attach utmost importance to better global economic governance. We are ready to partner with the international community and work together to ensure that the world economy and finance serves us all, and serves well.

I thank you.