KARACHI - It was not global economic crisis that hit Pakistans economy but poor economic management, postponement of key decisions, difficult political transition, and neglect of the economy in the first half of 2008. These views were expressed by Dr Ishrat Hussain, Dean and Director of the IBA, in his presentation on 'Pakistans Current Economy at a seminar organised by Pakistan German Business Forum (PGBF) here in Karachi.Dr Ishrat said that the global economy had shown greater resilience than expected a year ago. He said that the US economy was showing signs of positive growth, compared to the earlier forecasts of stagnant growth. On the other hand, he said, Europe was facing serious problems because of the polarisation of strong economies, such as Germany and France, on the one hand, and Portugal, Ireland, Greece and Spain on the other, within the Eurozone. He said that Pakistans economy has to complete the present stabilisation phase before it resumes the path towards high growth, more employment and reduction in poverty. He said that Pakistans banking system had withstood the shocks of global financial crisis quite well, as the reforms carried out earlier had strengthened the system. However, the next phase would require reforms in capital markets and non-banking financial sector so that the real sectors of the economy could benefit. He emphasised that the balance of economic power was shifting towards China, and Asia. Pakistans businesses have to shift their attention from the US, Europe and Japan towards these emerging economies, he added. He said that a one percent share in Chinas market would have fetched $12 billion in additional export revenues for Pakistan in 2008. from the US, Europe and Japan towards these emerging economies, he added. He said that a one percent share in Chinas market would have fetched $12 billion in additional export revenues for Pakistan in 2008. Regarding Pakistans economy, Dr. Ishrat said that the country had witnessed a growth rate at 7 percent. At that time, the world had tremendous confidence on Pakistan economy and was ready to invest here. However, the situation entirely changed, and we had to go to IMF for assistance in 2009. He said that the major reason behind this change was the massive increase in food and fuel prices in the international market, and the government had not passed on this difference to the people, resulting in huge additional expenditures. This pressure forced the government to borrowing from the central bank, resulting in high inflation that increased to 25 percent. In this changing situation, local currency depreciated, and we saw capital flight, and the countrys forex reserves declined drastically. He said that the tragic incident of assassination of Benazir Bhutto also affected foreign investors confidence negatively. On the other hand, the transition from previous to new government also affected the economy, and we had to go to the IMF for assistance, he added. Earlier, Saifuddin N Zoomkawala, President and CEO of PGBF, highlighted the aims and objectives of PGBF. He said that PGBF is the largest forum in the country. The forum is playing an important role to increase bilateral trade relations between Pakistan and Germany.