GOVERNOR State Bank of Pakistan Jameel Ahmad in his address at the ICMA Pakistan convocation in Karachi painted a picture of resilience and progress. His assertion that the firm commitment of both the government and the SBP has resulted in significant economic improvement is indeed heartening news.
From a staggering inflation rate to dwindling FX reserves, the journey towards stability seemed daunting. Yet, today we witness a different narrative. Inflation is on a downward trajectory, FX reserves are replenishing and the current account deficit is narrowing. Such achievements not only reflect prudent policymaking but also signal a ray of hope for Pakistan’s economic landscape. It is important to acknowledge the courage required to implement unpopular yet necessary measures. The decision to raise the policy rate to 22 per cent and the government’s commitment to fiscal consolidation were tough but essential steps. These actions, coupled with a coordinated policy response, are bearing fruit and steering the economy towards recovery. However, amidst the progress, it is crucial to address the persistent challenges that continue to burden the public. While inflation is on the decline, the high tariffs of essential utilities like electricity and gas remain a pressing concern. These tariffs pose a significant burden on the populace and hinder their ability to make both ends meet. It is imperative for the government to prioritize measures aimed at alleviating this burden and enhancing the income levels of its citizens. Furthermore, to ensure sustained economic growth, a holistic approach focusing on key sectors is imperative. Industries, Information Technology, agriculture and mining and minerals hold immense potential for driving economic expansion and bolstering exports. By tapping into these sectors, Pakistan can harness its economic prowess and create job opportunities, particularly for the youth, thereby elevating their income levels and fostering prosperity. Governor Jameel Ahmad has very rightly emphasized the need for fresh perspectives to address longstanding issues. This call for innovation resonates deeply as Pakistan navigates through a rapidly evolving economic landscape.
