Economy on path of stability despite challenges

ISLAMABAD : Despite several internal and external challenges, the country's economy is gradually moving towards sustaine

Published May 29, 2011 Updated May 29, 2011 09:10am

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By Syed Murtaza Gheblehzadeh

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The country's foreign exchange reserves continue to remain over $17 billion while the other economic indicators are also moving on positive direction towards economic progress.

Pakistan's foreign exchange reserves hit a record high of $17.956 billion during the week that ended March 26 which had fallen to $6.59 billion in November, 2008.

"The remittances sent by the overseas Pakistanis have been a considerably contributing in keeping the foreign exchange reserves go forward," sources said adding that the remittances have shown record growth this year.

Overseas Pakistanis remitted $1.03 billion in April 2011, the second consecutive month that the figure has crossed the mark of $1 billion, according to data of State Bank of Pakistan.

Remittances sent home by expatriate Pakistani workers have already crossed the $9 billion target set for FY11 as they have reached $9.05 billion in the first 10 months (July-April), showing an increase of $1.74 billion or 23.81 per cent compared with $7.31 billion received in the same period last year.

"Increase in the remittance shows the confidence of overseas Pakistan over the existing governing system of the country," remarked an expert while terming the continuous increase in remittances a positive sign.

On the other hand the country's exports have crossed $20 billion mark in July-April (2010-11), registering a growth of 27.78 percent over the exports of $15.773 billion during the same period of last year.

The overall trade deficit has shown negative growth of 1.94 percent, according to Federal Bureau of Statistics (FBS).

The industrial production has also increased by 1.71 percent during July-March (2010-11) despite the challenges of energy shortage.

The agriculture sector has also been contributing towards overall economic development and bumper wheat crop of over 24 million is expected this year against the wheat consumption of 22 million tons, according to Ministry of Food and Agriculture sources.

The surplus wheat could be exported in exchange of foreign exchange to help boost economy.

The government has been focusing on new growth strategy with an aim to raise the growth above its historical level, sources in the finance ministry said adding the main argument in the new growth framework is that growth should be market-led and not government led.

"Private sector should be the main driver of growth with public sector ensuring timely implementation of market reforms to promote competitiveness," sources added.

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