INTERNATIONAL financial institutions continue to recognise concrete steps taken by present government in Pakistan to put economy on the right trajectory. After Moody’s and Fitch, New York based rating agency Standard and Poor’s (S & P) has also categorised country’s short and long term outlook stable, recognising the progress made towards fiscal and economic reforms.
Despite breakout of Covid-19, it is encouraging to see that economic indicators are showing positive trends and definitely credit goes to government for timely decisions to protect lives and livelihoods amidst the pandemic. The country has made a good beginning of current fiscal year with tax collection and remittances showing significant increase. Pakistan Stock Market is also performing better which indicates confidence of the investors. A significant increase in sale of cement reflects that construction sector is all set to take off as a result of incentive package offered to the industry. Next three to six months are very critical and if construction sector sees the boom as envisaged by government, it will really generate immense economic activity and create hundreds of jobs opportunities in different sectors allied with construction industry. These ratings from credible world institutions will also go a long way in restoring confidence of foreign investors in Pakistani economy.
Reduction in interest rate by State Bank of Pakistan is another important factor that will give impetus to private sector investment in different sectors. We have no doubt in saying that good days are ahead if government continues with the policy of facilitating various industries. In fact situation could further improve if same kind of focus is given to the agriculture sector. Supporting farmers especially small ones by reducing costs of inputs such as fertilisers is the key to enhance agriculture yield and uplift this vital sector of economy. While keeping political temperature down, the PTI government must focus its energies to achieve targets set for different sectors along with checking prices of essential commodities through good governance.
