It is indeed a matter of great satisfaction that the overall economic environment continues to remain conducive for growth. According to State Bank of Pakistan's Second Quarterly Report for FY17 on the State of Pakistan's Economy, the overall economic environment remains conducive for growth, on the back of accommodative monetary policy, increase in development spending, and CPEC-inspired activities.
The improvements in investors' confidence as reflected in an uptick in private sector credit, especially for fixed investment purposes; foreign interests in Pakistani companies; and increased production of consumer durables. Similarly, a surge in import of machinery and raw materials also points to a robust industrial activity and buildup of future productive capacity.
While the report expresses a great deal of optimism insofar as Pakistan's economy is concerned, it has made a shocking revelation that the current account deficit has almost doubled compared to the last year. This was due to a surge in growth-inducing imports along with non-realization of CSF and decline in exports and remittances. So what is government's strategy to arrest the export slide in particular? The falling exports and remittances will certainly erode economic stability that has been achieved through the IMF loans and other external borrowings.
Comments
Comments are closed for this article.