That the country’s economic direction has been set right through a series of structural reforms is a fact that has found its best expression from the emergence of discernable macroeconomic stability.
Finance minister Mohammad Aurangzeb has reportedly stated at a news conference that there exists a broad consensus that the incumbent government has made significant inroads and achieved considerable progress in terms of macroeconomic stability.
In my view, he has rightly spoken of the rating upgrade by three rating agencies which, according to him, are “now aligned not only on where we stand but also on our positive outlook.” But he seems to have ignored the fact that the country’s economy is not out of the woods yet.
In other words, economic stability has been successfully achieved but economic recovery is still not in sight as country’s economy continues to face significant challenges and difficulties. Lower economic growth contributing to unemployment and deepening poverty is a strong case in point.
In my view, therefore, the government must take all the required steps aimed at fueling economic growth regardless of a likely spike in inflation. Higher growth will also widen trade deficit and toughen external sector.
But the objective of creating new job opportunities and reducing poverty levels must have clear precedence over every other policy goal or imperative.
Samina Ali (Karachi)
Copyright Business Recorder, 2025
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