Emerging Economic Powerhouse: A Deep Dive into Pakistan’s Significant Growth Across Various Sectors
29 November 2023
Published in: ARY news
In recent times, Pakistan has been experiencing a remarkable upswing in various sectors, paving the way for robust economic growth. This positive trend is not just confined to a single sector, but is rather a comprehensive growth observed across multiple industries and sectors of the economy.
From regional exports to textile imports, fish exports, and even advancements in agriculture and energy sectors, the country has been making significant strides. These developments are not only contributing to the overall economic stability of the country, but are also enhancing its trade relations with other countries, thereby marking a promising trajectory for its future economic growth. Here’s an in-depth look at the recent developments:
Regional Exports
Pakistan’s regional exports have seen a significant increase of 14.21 percent in just four months. This growth indicates a positive trend in the country’s trade sector, reflecting the effectiveness of the government’s export policies and the competitiveness of Pakistani products in the international market.
Textile Trade with Kazakhstan
Kazakhstan has expressed interest in importing more textiles from Pakistan, offering a $2 billion market. This development not only opens up new avenues for Pakistan’s textile industry but also strengthens bilateral trade relations between the two countries.
Fish Exports
Pakistan has earned $123.86 million through fish exports in four months. The seafood industry plays a crucial role in the country’s economy, providing employment opportunities and contributing to foreign exchange earnings.
UN FAO’s Projects in Pakistan
The United Nations Food and Agriculture Organization (UN FAO) has launched 40 ambitious projects aimed at revolutionizing agriculture in Pakistan. These projects are expected to enhance agricultural productivity, improve food security, and boost the rural economy.
Tech Supplementary Grant (TSG)
The Economic Coordination Committee (ECC) of the Cabinet has approved a Rs423 million Tech Supplementary Grant (TSG) for targeted gas projects in Sindh. This initiative is part of the government’s efforts to improve the energy infrastructure in the region.
Pakistan Stock Exchange
The Pakistan Stock Exchange has crossed the historic 60,000 points mark, reflecting the growing confidence of investors in the country’s economy.
MoUs with Kuwait and UAE
Pakistan and Kuwait are set to sign seven Memorandums of Understanding (MoUs) on manpower, energy, and defence, sealing a $10 billion investment deal. Similarly, Pakistan and the UAE have inked MoUs worth multi-billion dollars. These agreements are expected to bring significant foreign investment into the country, boosting economic growth and creating job opportunities.
UAE’s Investment in Pakistan’s Mining Sector
A UAE mineral giant is eyeing a mining venture in Pakistan, with plans to invest around Rs2.5 billion in establishing a mineral-based business. This investment will not only contribute to the country’s economy but also help develop its mining sector.
Health Programmes
The federal government has decided to launch health programmes worth Rs6.8 billion. These programmes aim to improve the healthcare infrastructure and provide quality healthcare services to the citizens.
Afghan Transit Trade
To curb the illegal entry of goods into the country, the government has announced a 10 percent processing fee on items imported under the Afghan transit trade agreement. This measure aims to deter smuggling and ensure proper taxation.
Special Investment Facilitation Council (SIFC)
The Apex Committee of the Special Investment Facilitation Council (SIFC) has unanimously approved various initiatives to be broached with friendly countries. The committee has directed to fast-track the implementation of various projects conceived under these initiatives. Businessmen have called for SIFC-CPEC collaboration, indicating the potential for increased foreign investment in the country.
Water Theft in Karachi
In an action against water theft in Karachi, over 150 hydrants have been razed and 1,200 illegal connections disconnected. This initiative is part of the government’s efforts to conserve water resources and ensure their equitable distribution.
Anti-smuggling Measures
Robust anti-smuggling measures implemented in Balochistan have translated into significant relief for Pakistanis. Earlier, millions of dollars were smuggled into Afghanistan every day. With effective anti-smuggling measures, the value of the dollar has declined, indicating that the economy is stabilizing. The prices of essential commodities like petrol and flour have also dropped, providing relief to the common man. The anti-smuggling initiatives in Balochistan have proven to be fruitful, bringing substantial relief to the people of Pakistan. Previously, smuggling activities resulted in the outflow of millions of dollars into Afghanistan on a daily basis. As reported by Bloomberg, traders and smugglers were moving as much as $5 million per day.
However, the implementation of robust anti-smuggling measures has led to a significant economic turnaround. The value of the dollar has decreased from 315 rupees to 276 rupees, indicating a stabilisation of the economy. This has also resulted in a drop in the prices of essential commodities, with petrol prices falling from Rs 330 to Rs 283 and the price of flour decreasing from Rs10,000 to Rs7,500.
In addition to this, the security forces have been successful in seizing a large quantity of urea that was being smuggled into Afghanistan. This has led to a reduction in the market price of urea from Rs600 to Rs500 per sack. These collective efforts are a testament to the effectiveness of the anti-smuggling measures and their positive impact on Pakistan’s economy.
Forex Association Report
The Forex association reports that around $1 billion has been deposited into banks after a crackdown. The daily average trading volume of currency dealers has surged from $5-$7 million to an impressive $50 million.
Current Account Deficit
The Current Account Deficit has improved significantly to $1.1 Billion during Jul- Oct FY24 as compared to $3.1 billion during Jul-Oct FY23. This improvement reflects the effectiveness of the government’s fiscal policies and the resilience of the country’s economy.
These developments indicate a positive trajectory for Pakistan’s economy. The government’s policies are yielding results, with improvements in trade, investment, and fiscal indicators.
