ISLAMABAD - Pakistan has come out of the critical situation because of the untiring efforts of the Prime Minister Imran Khan . The balance of payment situation is no more as vulnerable as it was in October, November.
The credit for this achievement goes to the Prime Minister. Finance Ministry 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 in Pakistan. Similarly some automobile companies have also agreed to make investments in our country.
The local investors are still a bit confused. The government should facilitate the local investors in taxation system so that the industries can boost in the country.
Dr. Abid Qayyum Sulehri (Economist):
It is good development that that the incumbent government is communicating with the stakeholders in order to stabilize the economy of the country. In my opinions, the immediate requirement to go to IMF is no more required to the government as friend countries including Qatar, China and Saudi Arabia have supported Pakistan.
Now Pakistan can make the repayments during the current fiscal year. If Pakistan would have to go to IMF in future then it can better negotiate with IMF on easy terms and conditions. The PTI government may present its second mini-budget to the Parliament in early January, as the current level of fiscal deficit is not sustainable.
The PTI government also wants to increase government spending in many sectors, reduce unemployment substantially while bringing down inflation at the same time. The year 2020 will be better than the 2019 year.
The biggest challenge for the incumbent government is to overcome trade deficit so the government needs to focus on improving exports.
The desired sources of foreign exchange earnings, notably exports and remittances, have lagged behind Pakistan's imports and repayment of foreign debt interest payments as well as the principal as and when due.
The rising current account deficit has reached an historical high which is extremely disturbing with little likelihood of a rise in our foreign exchange reserves without incurring loans to shore them up.
The government should encourage the local industry and ban import of consumer goods. There should only be made in Pakistan products in the country.