By Sardar Khan Niazi
Prime Minister Imran Khan has praised his government for achieving a GDP growth of 5.37% reportedly the second-highest growth in the last 14 years, which led to the creation of substantial jobs, and a rise in per capita income.
The success of Pakistan’s economic reforms has been recognized all over the world. Bloomberg has predicted that Pakistan would sustain a high growth trajectory and employment levels.
The Economist magazine in its latest normalcy index reported Pakistan amongst the top three countries indicating saving jobs and saving lives since the outbreak of the Covid-19. There is no reason to question the claims made by the government as economic fundamentals are showing a strong trend.
The national economy did not only register sustainable growth but also the country’s exports, remittances and foreign reserves witnessed an upward increase despite challenges thrown by the Covid-19.
Due to the government’s judicious policies, the country’s reserves and exports saw an upsurge and international rating agencies moved up Pakistan’s economic position. Both the World Bank and the IMF have been admiring the government’s policies that have brought steadiness to the economy of the country.
The present trends indicate that the exports, which continued to stay stagnant for several years, are likely to go beyond the mark of $30 billion, and the foreign exchange remittances by overseas Pakistanis would remain above $30 billion during the current financial year.
There is no hesitation to accept that the government took record foreign loans but one must appreciate the fact that it retired debt at the rate of $10 or 11 billion every year and the circular debt, which had assumed menacing proportions, has also started decreasing.
The agriculture sector registered a 3.5 percent growth, large-scale industry 7.8 percent, and services sector 5.8 percent. All these admirable successes show good prospects for the future of the economy but the citizens of the country say that the trickle-down effect of these developments in the economy is not visible to them.
The progress in the economic field should have led to financial relief for the masses, particularly the poor segments of the society but nothing is in sight except the repeated statement of the government committed to providing relief to the people.
Of course, programs like health-card and ration-card Government are praiseworthy but their impact is very limited and cannot be termed as considerable relief in the face of the current inflation in the country.
Increased tax collection, surging remittances by overseas Pakistanis, a substantial increase in exports, and the highest ever foreign exchange reserves should mean the availability of additional resources to lessen the sufferings of the people but this is not in sight.
Prices of essential items and medicines are beyond the buying power of the people. The government has slashed developmental allocations. There is a gas shortage as well and the private sector is not expanding at the desired pace.
The agricultural sector might have grown but the government of the leading agricultural country has no choice but to import wheat, sugar, and pulses while prices of vegetable oil and ghee have swelled disturbingly.
The PKR continues to bleed against the US dollar despite the government’s efforts to limit further depreciation. It is trading above the Rs.180 a dollar level amidst fears that the ratio might cross the figure of 200 because of the burden of withholding tax.
There are apprehensions even among the governmental quarters about the wide trade deficit that eats up gains in home remittances by overseas Pakistanis.
The Government in its own right is entitled to celebrate its economic achievements but the citizens would feel happy when they get relief, which is conspicuous on the horizon.
