As the economy around the world decreases because of COVID-19, Pakistan is a country that is considered under developing country, but during this COVID period, its economy of pakistan increases day by day. Economic experts believe that if the government helped the industry sector, we would start growing.
According to Imran Khan
Pakistan is going in the right direction in 2021. we will facilitate our industry through incentives and business-friendly policies. Wealth creation will use to reduce the poverty levels.
Asia Development Bank
According to the ADB report, Pakistan has been better in development during this challenge of COVID-19
Pakistan problems Today
- Pakistan\’s biggest issue in balance economic recovery.
- Political Conflict is the biggest issue that Pakistan faces for the last many years. It badly affects on Pakistani economy. Pakistan\’s economy can\’t afford another dharna. PDM may create an issue in the economy of Pakistan.
- Distrust and renunciation of mainstream citizens. The troubles of Balochistan, or the other stories that haunt Rawalpindi, are not just the misdeeds of the citizens. Unequal distribution of resources to other provisions.
Focused US Pakistan Engagement
As the US President Biden administration begins to formulate its policy for South Asia, Pakistani officials are pushing for a broader relationship rather than focusing on Afghanistan and security issues. Recently, two veterans of the Obama administration raised the issue that Pakistan is critical to its neighborhood\’s stability, saying it was the first step in resuming the US-Pakistan Strategic Dialogue between 2010 and 2016. Discussed for The Strategic Dialogue was chaired by the US Secretary of State and senior Pakistani cabinet officials and covered a wide range of issues, including energy, the economy, and security and defense relations.
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Pakistan faces significant economic challenges, and it can benefit from international aid. Still, this aid should predicted on the Pakistani government to implement long-term reforms, not Pakistan\’s political-geographical importance.
Allowing international financial institutions such as the IMF and the World Bank, where the United States is a prominent voice, to lead the talks, will increase the likelihood that such engagement will strengthen Pakistan\’s economic future whether they are pushing for greater transparency and cost-effectiveness analysis of large infrastructure projects, including those that are part of the CPEC, or to ensure that Pakistan has a broad and equitable tax base. If they are relied upon, these debates will be more likely to succeed. Influence of Pakistan\’s geopolitical importance.
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Foreign Investment
Foreign direct investment often experiences high economic growth by opening it up to new markets, as seen in many emerging economies.
In July-December fiscal year 2021, foreign direct investment reached 952.6 million last (35 1,357.4 million last year), while on YOY, in December 2020 (last year 3 493 million), FDI $ 193.6 million Recorded. During July FY 2021, foreign private portfolios invested 244.4 million. Foreign public portfolio investment had a net outflow of 193 193.8 million. During July-December FY 2121 (last year\’s inflow of 47 1,471.0 million), total foreign portfolio investment recorded an outflow of 43 438.2 million. The major transit countries are the United Arab Emirates (10 101.7 million) and Singapore (.5 21.5 million).
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Economic Forecasting
Moody\’s Investors Service predicts that Pakistan\’s economy will grow by 1.5% this fiscal year. That government support has helped stabilize Pakistani banks, but the banking sector risks have been growing.
Commenting on Pakistan\’s banking sector, Moody said, \”Economic activity will remain below pre-expansion levels, even though the economy should return to modest growth of 1.5% in FY2021.\” Compared to the World Bank\’s 0.5 GDP growth rate for the current financial year, the SBP has forecast 1.5-2.5pc growth for Pakistan\’s GDP.
The agency said the Pakistani banking system has a strong ability to increase long-term loans, given Pakistan\’s large non-restrictive population. A stable outlook reflects banks\’ reliable funding and liquidity, although challenging – but better.
Economy growth Return in 2021
The economy of Pakistan faces a crisis in the last few years. Pakistani rupee\’s value took a massive hit after reaching the actual exchange rate value. It causes the inflation rate to soar, and everything becomes expensive. However, finally economy grow. The current balance has been surplus for the last four consecutive months with 328$.
Political Party without Economic Growth
The parties won the elections by violating the basic sentiments of the people. One of the key elements of election slogans is always \’change.\’ But Mambo Jumbo strictly guards the artifacts of \”change\”. Sincerity demands that the parties formulate their policies on various production factors, namely land, natural resources, socio-economic, financial, labor, capital, and organization. But, they remain silent on their plan. In their hearts, the leaders knew that the electorate had little choice. In their hearts, the leaders knew that the electorate had little choice. They would either vote for the charisma of one leader or against the hatred of another. Voters do not force leaders to disagree on the country\’s problems and invent a preferred solution.
Intellectual indifference has been the trademark of elections. It is not the tradition of political parties to have a shadow cabinet with many alternative policies. Tax proposals do little to squeeze out attendees. Nothing is done to reduce the distribution of wealth and economic power. No attention is paid to the structure of our society. How did the filthy rich, the landlords, and the industrial robbers come into being? If the wealth accumulated in the hands of a few are linked to wrong deeds, a considerable part should be accumulated. Wealthy interests resist change.
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Bottom Lines
If Pakistan wants to industrialize, then its best ally is China,\” the economic model of china is best for Pakistan\’s needs. Pakistan also needs to work on their agriculture sector again for this we need china\’s help for economic development.
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