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Praising Pakistan’ economy

Praising Pakistan’ economy

According to a report by a US news and analysis organization, the progress of Pakistan is vital for the entire region due to various reasons. A nation of 200 million, Pakistan is the sixth most populous country in the world and a nuclear power. A recent development in Pakistan in the form of an economic corridor has changed the dynamics of the regional economy and security issue is now directly linked with the Chinese interests. But the country is facing various issues, including substandard education system, rising trade deficits and minimal investment, especially from western nations. The country has been oscillating between political chaos and military rules since independence. At present, only China is the main investor in the country and its companies are owning various state owned entities in Pakistan.

A good point is that the era of political turmoil is almost over, but there is always room for improvement and the government will have to streamline its affairs. The country has also been facing energy crisis and water shortage for the last many decades. When various regional countries are continuing to consolidate their economic gains, Pakistan is titled as the most underrated economy of the year. However, despite all odds, Pakistan has a highly bullish stock market and surging foreign exchange reserves. The equity market of the country registered a 46 percent growth last year and its performance is regarded as better than China and India. The gross domestic growth is likely to record five percent growth this year and normalcy has returned to the country.

The positive report is no doubt a blow of fresh air, but the government should not fully rely on foreign media reports. Terrorist incidents have though significantly reduced during the last three years and poverty rate has declined by 50 percent, but threats to peace are still real and some urgent steps are required to alleviate poverty in the country. As a matter of fact, poor administration and mismanagement are the main enemies of this country. The exports are falling and trade deficits are increasing, but the government has so far failed to create industrial surplus and introduce a reasonable trade policy. Unless the present leadership works on war footings during its remaining tenure in the office, it will be difficult for it to claim success in the next elections.