Acknowledgement of economic gains

IN its latest report, Bloomberg has marked Pakistan Stock Exchange (PSE) as the fifth best performing stock market in the world and number one in Asia, thus outperforming many big economies in the region. In fact the last one year has remained very eventful for PSE in which it registered new benchmarks of growth. According to data, the 100 index gained about 15000 points during the year and closed at 47, 806. All this shows the restoration of confidence of both domestic and foreign investors on the Pakistani market and we believe that the time ahead is far more promising for the stocks.
Nevertheless international acknowledgement about Pakistan’s economy and its stock market, the road to economic prosperity where people see its benefits reaching them is yet to be achieved. The latest report released by State Bank of Pakistan highlights the future challenges faced by the economy. These range from widening fiscal and current account deficit to lowering remittances, exports and inflation of food items. All these are very crucial issues that our financial team needs to ponder over to check the trends. Especially the continuous fall of remittances and exports carry great implications and hinder the government’s efforts to achieve the targets set in the realm of fiscal and current account deficits. Whilst over the last three years, the government has managed to revive the growth rate through its reforms program but as per the very candid report of the central bank, much more needs to be done to rectify the very weaknesses in the economy. Necessary support needs to be given to important sectors especially the agriculture and agro-based industries in order to bolster the exports and similarly a conscious policy is required to bolster the remittances, which over the years have helped the country cap the current account deficit. Finally, the government must also ensure that the economic gains also have trickle down effects and people should see difference which we believe will give further impetus to growth.

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