A Stable Economy
The government aims to now increase jobs in the Pakistani market along with creating avenues for foreign investment after successfully managing to bring down the trade deficit by 35 percent. In a recent statement by Prime Minister (PM) Imran Khan at the Sino-Pak Tire Manufacturing Joint Venture Signing Ceremony, he highlighted how the focus of his government has now shifted to creating a business-friendly environment in order to fulfill the promise of creating jobs in the economy. Pakistan’s status on the World Bank’s ease of doing business index has gone up 28 spots. This is because Pakistan is working relentlessly to improve the banking system of the country along with finding avenues for foreign investment, especially after the tariff war between the United States of America (USA) and China, that has prompted several foreign investors to look towards cheaper economies in the region, such as Pakistan.
One of the major plans of the current government is to expand the construction sector of the economy and give it a proper status so as to bring it into the tax net and also give it the status of a proper developmental sector that adds to the revenue of the economy. The construction sector of Pakistan is growing exponentially - if it is expanded beyond the urban centers, Pakistan can benefit greatly due to the improved infrastructure and the push on the social setting that it will bring along. Another aspect of this new strategy is improving the exports of the country. Our foreign exchange will increase with the export of goods, he said.
He also pointed out how the relationship with China will help the current goals as China is interested in developing several joint initiatives. The government is working to make business easier for Chinese in the Pakistani market. This will improve foreign investment in Pakistan and help create jobs. At this point, the biggest success is the natural stabilisation of the Pakistani rupee, and the improvement in the Pakistani stock exchange. The country’s progress has also been endorsed by the International Monetary Fund (IMF) and World Bank. This will encourage foreign investors to look towards Pakistan as a potential economy. If Pakistan can manage to get out of the grey list by fulfilling the remaining seven clauses, there is a great chance that the economy can become home to several foreign investors, giving it the required push.