Strong economic growth


Pakistani economy started to show positive signs.Eventhough it still faces problems and weaknesses, but over all the economic situation has improved and economy started to grow strongly. The present government managed the economy better compare to the last PPP government. The improvement in the supply of power and gas started to show the impact on the economic activities.

The World Bank predicted 5.2% growth rate for Pakistani economy in 2017. The foreign reserves stood at 23.183 billion dollars. The large scale manufacturing production increased by 3.2% in July to November quarter. The inflation continue to fall for straight six weeks and food inflation remained around 3% in December. The non food inflation is around 4.2%.

The revenue collection also improved in last three months compare to first quarter of this fiscal year. The government is saying that the shortfall experienced in the first quarter was mainly due to two factors. One was subsidy or relief given to consumers on petrol products and second the payment of sales tax refund of 45 billion rupees.

The fall in the exports and remittances is hurting the economy and slow growth in agriculture sector needs to be addressed to achieve even higher growth. It is expected that export package announced by the PM will give boost to the falling exports. The competition in the textile sector internationally has intensified in last few years and exporters and government should focus on new markets to increase the exports.

The other concern is the falling remittances from oversees Pakistanis. The economic crisis in the Gulf countries and repatriation of workers is the main reason of this fall. The government needs to address the problems faced by the Pakistani workers in Saudi Arabia to increase the remittances.

The investments in Pakistan- China Economic Corridor also helping the government to manage the fiscal situation. The government is confident that the budget deficit will be kept according to the budget.

The government also take measures that the ordinary Pakistanis should get the benefits of the growing economy. This growth should not confine to the big business and handful of individuals. Fiscal discipline, better management and improved statistics are necessary but more important is the visible improvement in the lives of the downtrodden.

Finance Minister Ishaq Dar should be appreciated for managing the economy in a better way. After stabilising the economy, now the priority should be on providing the much needed relief to the masses.

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