General elections of the country came to an end and political parties are in the run to form a new government but some of horrible challenges are waiting for the new government and one of this is economic challenge.
The economy is in shambles, as Pakistan reserved its highest trade deficit in history in the recently-ended fiscal year, as authorities and previous government miserably failed to increase exports and contain the import bill. The trade deficit in the 12 months of fiscal 2018 stood at $37.7 billion with imports standing at a record $60.9 billion. Pakistan Bureau of Statistics (PBS) noted earlier that. “During fiscal year 2017-18, trade deficit stood at $37.7 billion, which was 16% or $5.2 billion more than the comparative period of the previous year,”
The current scenario shows that PTI has got a majority to form new government, this time PTI is leading ahead with 119 seats while its main rival Pakistan Muslim League-Nawaz (PML-N) is at 63 seats. The Pakistan Peoples Party (PPP) of former president Asif Ali Zardari is leading in 38 seats.
If PTI forms the government and according to its economic plan which was revealed before the election, PTI claims that it will revamp FBR and make it autonomous insulated from political pressures and will increase tax revenue to 15 per cent of GDP in 2018. PTI’s economic plan foresees to double the growth rate of economy through investment and trade driven growth strategy. Though, soon after the election ended The Pakistan Stock Exchange (PSX) reacted positively by opening two percent higher and hoped that the direction of the stock market will remain positive in the coming days.
Still it is a big challenge for the next government to address critical challenges facing Pakistan today and break free from vicious cycle of low growth, high inflation, rising poverty. Country export and bad condition of textile industry may also to handle immediately by the new government.
It needs deep institutional reforms to entrenched vested interests. The next government will face tremendous pressure to steer the country out of its vulnerable economic position and persistent foreign selling. However, the important thing is that PTI has to implement the economic plan and positively handle the economic challenges to put the country back on track.
Government will face tremendous pressure to steer the country out of vulnerable economic position.