THERE are multiple indicators to support the growing perception that the national economy, at long last, has started coming out of hibernation due to bold but much-needed measures adopted by the economic managers of the PTI Government. That the economy was moving in the right direction is not just the claim of the government leaders but there is appreciation of the positive change by international donors including the International Monetary Fund (IMF) and the World Bank.
There is no denying the fact that the bitter and harsh steps taken by the PTI government during the last about two years increased difficulties of almost all segments of the society but there were no other choices in view of the kind of economic and financial malaise afflicting the country. The situation would have been much better if the authorities concerned were able to implement all of their initiatives but they had to make compromises in view of political expediencies and pressure tactics by vested interests. Anyhow, as pointed out by Advisor on Finance Dr Abdul Hafeez Sheikh, current account deficit has reduced by seventy three per cent during the first five months of current fiscal year as compared to the corresponding period last year and foreign exchange reserves are on the rise. It is also heartening to note that reduction of three billion dollars in foreign exchange swaps and forward liabilities increased the foreign exchange buffer by 4.8 billion dollars which provided further stability to external account. Imports have been reduced while exports have recorded a modest increase and the situation can improve further if the Government provides required incentive to the industry. Noting that Pakistan’s economic reform programme is on track and the decisive policy implementation by the government is helping to preserve economic stability aiming to put the economy on the path of sustainable growth, the IMF has released second tranche of its bailout package, sending positive signals to other donors and development partners. As the financial pressure eases, the Government will find itself in a position to offer relief to the masses and focus on policies and programmes aimed at accelerating the economic growth. The decision to launch over five trillion rupee worth of PSDP Plus programme for the next year in collaboration with the private sector to propel growth has the potential to help realize the objective if its actual implementation is ensured through aggressive planning.
