ISLAMABAD – Pakistan has come out of the critical situation because of theuntiring efforts of the Prime Minister Imran Khan. The balance of paymentsituation is no more as vulnerable as it was in October, November.
The credit for this achievement goes to the Prime Minister. FinanceMinistry should have done plenty of things in last five months or so.
The foreign investors are taking keen interest for investment in Pakistan.China, Qatar and Saudi Arabia have also expressed willingness to invest inPakistan. Similarly some automobile companies have also agreed to makeinvestments in our country.
The local investors are still a bit confused. The government shouldfacilitate the local investors in taxation system so that the industriescan boost in the country.
Dr. Abid Qayyum Sulehri (Economist):
It is good development that that the incumbent government is communicatingwith the stakeholders in order to stabilize the economy of the country. Inmy opinions, the immediate requirement to go to IMF is no more required tothe government as friend countries including Qatar, China and Saudi Arabiahave supported Pakistan.
Now Pakistan can make the repayments during the current fiscal year. IfPakistan would have to go to IMF in future then it can better negotiatewith IMF on easy terms and conditions. The PTI government may present itssecond mini-budget to the Parliament in early January, as the current levelof fiscal deficit is not sustainable.
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The PTI government also wants to increase government spending in manysectors, reduce unemployment substantially while bringing down inflation atthe same time. The year 2020 will be better than the 2019 year.
The biggest challenge for the incumbent government is to overcome tradedeficit so the government needs to focus on improving exports.
The desired sources of foreign exchange earnings, notably exports andremittances, have lagged behind Pakistan’s imports and repayment of foreigndebt interest payments as well as the principal as and when due.
The rising current account deficit has reached an historical high which isextremely disturbing with little likelihood of a rise in our foreignexchange reserves without incurring loans to shore them up.
The government should encourage the local industry and ban import ofconsumer goods. There should only be made in Pakistan products in thecountry.
