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Economic recovery

Nadeem Moulvi

The writer is a business analyst.

The PTI government is developing the economy while removing the obstacles created by the opposition either by political rallies or spreading fear that the nation is not on the right track.

I am stunned by the sheer ignorance of the opposition when they comment on the economy. The reality is simple and the policies by the government are going to bear fruit and we are heading on the path to economic prosperity. The industries have appreciated the banking system for giving the opportunity to develop all sectors despite the pandemic by maintaining interest rates and giving soft loans.

The foremost factor to develop the industry was providing the cash flow and another was reducing the cost of doing business. Pakistan’s exports have remained stagnant for years as the products were not price competitive for buyers and expensive even for local consumers. The industry had to pay heavy interest rates to banks and the cost of business increased while exports continued to decline.

The banking sector has uplifted the industry by providing loans to several sectors. Many individuals have also been given the opportunity to set up their own businesses or expand existing ones. The formalities and paperwork of starting a new business have been curtailed and new companies are being established who are working to develop the economy. This has been acknowledged internationally as Pakistan has made huge progress in the Ease of Doing Business index.

In order to boost small-scale and medium industries, the government has also removed the surcharge on electricity during peak hours and will charge a uniform rate throughout the day to keep production going.

The biggest achievement of the government’s economic team has been to keep interest rates stable and keep the money flow despite the adverse economic conditions.

At present, all industrial sectors are working and exports have risen while the rest of the world is still under the effect of the coronavirus crisis. The situation has been under control in Pakistan and we have managed to keep our industries open and increased production to cater to the growing demand. The current account deficit has been in surplus for the last five months which is a record for any government.

The local construction industry has also seen a boost as investors have been given further incentives by the prime minister. No questions are being raised over the source of investment and other facilities are being provided. People are being the opportunity to buy property on mortgages and they can finally have their own home.

These are some of the many factors which the government has worked on to develop the economy and the results will be seen soon. The GDP growth rate has been projected at two percent unlike the doom and gloom scenario projected by the opposition.