Covid a challenge to growing economy of Pakistan

Owing to timely and prudent policies of the incumbent govt, the country's economy had been showing signs of recovery, with construction and manufacturing sectors in lead, however, the economic revival had once again been pitched against the stronger than ever third wave of Covid19, official sources said.

The economy had registered positive signs during first nine months of financial year (FY) 2020-21 as indicated by various economic indicators.

The remittances grew by 26.2% from July 2020 to March, 2021 while the revenue collection by the

Federal Board of Revenue grew by 10.9 % to reach Rs3.4 trillion in the first three quarters of the current financial year, according to the official data.

The careful expenditure management and effective resource mobilization helped in containing the fiscal deficit within reasonable limit while primary balance continued to remain in surplus.

Likewise, the large scale manufacturing exhibited 7.5% growth during July-February, FY 2021 compared to negative 2.8 percent last year. Cement sector registered 17 percent growth during JulyMarch, FY 2021 with 100 percent capacity utilization; significant increase in sale of cars, motorbikes and tractors signifies that economic revival was taking place.

The country recently launched triple-tranche Euro bonds raising UD$ 2.5 billion while on other side, the overall liquid foreign currency reserves reached $23 billion, which helped in building the valuable foreign exchange reserves.

The sources said in order to control inflation, the government had adopted a policy of close monitoring of the supply and demand side of essential food items as well as providing essential commodities at affordable prices through the support of assisting mechanisms like Utility Stores, Sasta Bazaars and providing subsidies on essential food items like sugar, wheat flour, vegetable oil etcetera.

Under "Ramazan Relief Package" of Rs7.8 billion, the Utility Stores Corporation would provide 19 essential items at subsidized prices to facilitate the marginalized segments of the society during the holy month through its chain of outlets across the country.

On the other hand, the government envisaged gradual reduction in overall fiscal deficit from 7.4% of the gross domestic product (GDP) during FY 2021-21 to 4.4% in FY 2023-24 through revenue mobilization with a higher growth trajectory, rationalization of current expenditure and prudent financial management.