Caretaker Finance Minister Dr Shamshad Akhtar projected on Saturday that country’s economic growth will rebound by 2-2.5% in the current fiscal year. Virtually addressing the ‘IPO Summit 2024’, organised by Pakistan Stock Exchange (PSX), Dr Akhtar estimated the agriculture sector to grow by 5.6% and industrial sector by 2.5% in the year. She stood optimistic on collection of revenue in taxes, saying the Federal Board of Revenue (FBR) would most probably collect Rs10 trillion in FY24 compared to set target of Rs9.4 trillion for the year.
The minister’s optimism is not without a reason as there are encouraging economic indicators despite financial constraints, political instability and security concerns. Latest data released by Pakistan Bureau of Statistics (PBS) shows the country has gradually ramped up imports of plants and machinery, indicating that industries are purchasing capital goods to sustain existing production levels as well as make necessary upgrades and expansion of factories as they foresee a promising growth outlook. Imports of machinery increased 41% to $671 million in December 2023 compared to $475 million in the same month last year. Data breakdown suggests that top two imports were electrical machinery and apparatus, and telecom equipment in December as well as in first half of the year. Some 55% of the total import of machinery in six months comprised electrical and telecom sectors. The agriculture sector also saw a significant surge in imports of machinery in terms of percentage as data shows imports of agricultural machinery and implements rose 70% to $37 million in first six months of FY24 compared to same period of FY23.
There are reasons to believe that policy measures introduced and steps taken by Special Investment Facilitation Council (SIFC) have helped restore shattered confidence of the business community. However, authorities will have to do more to help realise the dream of accelerated industrial and agricultural growth. The IT and telecom sector too has great potential to contribute to economic growth yet government itself plays havoc with these bright prospects by indulging in Internet breakdowns frequently, sending a highly negative signal to entrepreneurs.
