Pakistan faces a setback at the economic front
The Ministry of Finance, in its Monthly Economic Update and Outlook, said that total foreign investment saw a 78pc decline in the first seven months of the current fiscal year (7MFY21).
The ministry reported that total foreign investment in the (July-January) period amounted to $755 million against $3.438bn as compared to the corresponding period of the previous fiscal year.
“Prospects of economic growth are showing visible signs of improvement during July-January period 2020-21 which strengthen expectations about economic recovery,” said the outlook, claiming credit for the timely measures against the pandemic in terms of fiscal stimulus, easing mobility restrictions, the timely arrangement of vaccination, together with accommodative monetary policy allowed economic activities to continue in a difficult time.
“Thus, it is observed that overall economic recovery is on its way and may accelerate in the coming months”.
The report further said the recent developments in inflation showed negative trends. It expected that due to much-needed structural measures, the downward trend of prices of these items will be permanent.
Industrial activity, measured by the LSM index was the area most exposed to external conditions, it said, adding the activity was recovering from two consecutive crises.