The maintenance of Macroeconomic stability is the prerequisite for sustained development
and economic growth. As the stable growth and inflation helps to keep short term
and long term interest rates low, hence, vital in reducing the costs of debt-servicing.
Moreover, stable real economy helps to breads stable expectations and this in turn
can provide an incentive for the foreign investor as well.The past development strategies
of Pakistan have not delivered high sustainable economic growth; rather have only
led to boom-bust cycles. The high growth periods in the past have been triggered
by conducive international developments and increase in foreign assistance. Once
these flows slowed down, so did the momentum of economic growth. This is because
the growth has not been supported by an increase in investment and exports. In addition
to that Progress in human and social indicators has been disappointing. Poverty
levels remain high, job opportunities that meet citizen's aspirations are lacking,
and stark income inequalities have appeared in the recent years. Furthermore, Socio-economic
tensions have been heightened on account of increasing disparities among the provinces.
Within the provinces, significant areas feel deprived of the gains that should have
accrued to them from economic growth. This situation demands a fundamental change
in the development paradigm so that common people must be at the center of the development
process and have ownership in the economic development of the country. This change
requires more investment in people, leading to high sustainable growth, reduction
in poverty, improvement in income distribution and harmony among regions and provinces.