here on a positive note, an IMF delegation, led by its director for Middle East and Central Asia Jihad Azour said in a statement the transition to a market-determined exchange rate has started to deliver positive results on the external balance, exchange rate volatility has diminished, monetary policy is helping to control inflation, and the SBP has improved its foreign exchange buffers. It also noted a significant improvement in tax revenue collections, with taxes showing double-digit growth net of exporters’ refunds.When present government came into power, the country was faced with worst economic crisis. In fact the country was close to default because of widening current account deficit. The financial assistance from friendly countries including China, Saudi Arabia, UAE and Qatar helped the government avert the disaster. But it really goes to the credit of PTI government for taking some real painful and political unpopular decisions to put the economy on the right path. Reforms in power sector are really paying off as the volume of monthly circular debt stands significantly reduced. Nonetheless, as stated by the IMF, decisive implementation of the reforms programme is critical to pave the way for stronger and sustainable economic growth. The government is still faced with the issue of budget deficit which had reportedly escalated to 8.9 percent on June 30, 2019. In our view, efforts should be expedited towards privatizing or reviving the loss making state owned enterprises especially PIA and Pakistan Steel Mills. Then as inflation has been anticipated to dip in the coming months, the SBP should cut the policy interest rate as the current one is not suitable to generate economic activity and attract investment. Major focus should be given to the development of agriculture sector on modern lines and provision of relief to farmers as well as revival of industries as only through significantly bolstering exports and tax collection, the country can address its economic woes and move towards achieving sustainable economic growth. Source:
September 2019 Buy CSS Books Online as Cash on Delivery | Call/SMS 03336042057Page 71 ADB’s Assessment | EditorialPakistan’s economy is having a hard time is no revelation. While the incumbent government, led by Prime Minister Imran Khan, is doing all it can to treat the ills, many an economic expert believe it is the remedy that has worsened the malady. The policies adopted by current economic managers, meant to achieve economic stability in a country with negligible FDI and exports totalling half as much as imports, have literally squeezed the common man dry. Fiscal tightening measures, coupled with currency depreciation, have turned inflation into a double-digit demon and led to a notable fall in the economic growth rate. While the government claims that it has achieved the economic stability and is now all set to hit the road to growth and then move on to attain prosperity, there are apprehensions that the economy will be able to turn the tight corner.