Stability in Sight

18 November 2024

Published in: The Nation

Signs of economic recovery are emerging, as highlighted by the recent developments in Pakistan’s financial landscape. The In­ternational Monetary Fund (IMF) has underscored the im­portance of continuity in sound economic policies, especially those focusing on better tax collection and macroeconomic stability. Simul­taneously, the Pakistan Stock Exchange (PSX) has witnessed another record-breaking week, a clear indicator that market sentiments are buoyed by the government’s fiscal measures.

This dual affirmation from international bodies and market per­formance signals a shift towards a more stable financial trajectory. The government’s focus on fiscal discipline and targeted economic reforms deserves commendation. Measures to address tax inefficien­cies, curb leakages, and streamline public expenditures have laid the groundwork for a recovery narrative that resonates with investors and international observers alike.

However, the real test of these policies lies in their trickle-down effect. Market gains and fiscal discipline are meaningful only if they translate into tangible benefits for the public. The relentless inflation, high energy costs, and dwindling purchasing power of the average Pakistani continue to paint a grim picture on the ground. Economic growth must be inclusive, and policies must aim at easing the every­day burdens faced by the populace. While the PSX’s performance is a promising sign, it is crucial to remain cautious. A strong stock market does not equate to a thriving economy, especially when the broader citizenry struggles with rising costs. Moving forward, consistent pol­icy decisions, coupled with a commitment to equitable growth, can steer the country towards a more sustainable economic future.

The government must capitalise on this momentum, ensuring that the current stability is not just a fleeting phase but a foundation for long-term economic resilience. Only then can the fruits of these poli­cies truly reach the people who need them most.