Shah Faisal Kakar
The economy of Pakistan is passing through a crucial phase. It has the potential to become one of the largest economies of the world. It is predicted to be one of the next 11 economies in the 21st century. If we compare the present economic condition of the country with the past when Pakistan came into being in 1947, a lot of developments have taken place.
All economic indicators in Pakistan show positive trend especially those achieved during the past few years. Inflation, which is one of the most important indicator of strength or weakness of an economy, has dropped from double digit to single digit. The GDP growth rate has risen to 4.3 percent during 2014-15 that had been less than 2 percent for several years in the past. Its foreign reserves reached an all time high of $18.70 billion in June 2015.
Poverty in Pakistan has been reduced dramatically over the past few years. Pakistan has adopted the Millennium Declaration in the year 2000, and is committed to spare no effort to set free the most vulnerable segment of population from poverty
Pakistan’s economy is at a turning point, says the World Bank’s bi-annual Pakistan Development Update. Growth recovery is under way, with projected GDP growth approaching four percent, driven by dynamic manufacturing and service sectors, better energy availability, and early revival of investors’ confidence.
The fiscal deficit is contained at around six percent of GDP due to improved tax collection and regulating current and developmental expenditure. The current account deficit remains modest, at around one percent of GDP, supported by strong remittances and export dynamism, and the external debt position is gradually improving since monetary and exchange policies switched gear towards rebuilding reserves.
The present government has taken several steps to turn around the economy. Pakistan’s economy is growing despite several challenges such as fight against terrorism. The government has launched Operation Zerb e Azb against terrorists. The law and order situation in the country has improved ever since the operation has started.
Pakistan’s all times friend, China, has planned to invest $46 billion in Pakistan in the next 10 to 15 years. Most of this investment will go into development of infrastructure and energy sector. The China Pakistan Economic Corridor (CPEC) will run from the Chinese city of Kashgar to the port of Gwadar in Pakistan. Gwadar is a deep-sea port with great potential to become a major sea port in the region.
Today Pakistan offers a lot of incentives to foreign investors. It is one of the most investment friendly countries in the world. Recently Mansour Al Mosaid, a Saudi Arabian company, has won bidding of National Power Construction Company (NPCC) as privatization of national institutions continues in Pakistan. The company has bought NPCC’s 80 percent share for Rs.2.49 billion.
By all measures, economic indicators of Pakistan show sign of great optimism despite number of challenges. Most important potential in Pakistan is its resilient human resource, which continues to embrace all daunting challenges and contribute in the economic development of Pakistan. Out of 200 million population of Pakistan 36 percent is youth force that has great potential to bring about positive changes in the country. William James aptly said, “Pessimism leads to weakness, optimism to power.”