Prime Minister Imran Khan while addressing the ‘Pakistan Strategy Dialogue ‘ under the auspices of World Economic Forum told his global audience that after enduring the debilitating impact of first wave of corona virus and various economic challenges, the economy of the country was now stable and moving in the right direction.
This recovery he claimed happened due to: current account deficit becoming plus after 17 years; climb-down on money laundering by the government; gains by the currency in recent months; revived confidence of the business community and stock exchange in the government policies; vibrancy of the construction and textile industry made possible by the initiatives taken by the government to not only save the economy from adverse impact of the COVID 19 but also keep it running.
He has also been making similar claims for the consumption of the domestic audience during the last few weeks saying that the hard times were over and the people would start feeling the gains of the steps taken by the government to revive the economy.
Dr. Hafeez Shaikh during his virtual address to the Forum while shedding light on the Economic Strategy adopted by the government said “The government firmly supports private sector as an engine of growth and believes in building institutional capacity for sustainable and inclusive economic growth,”
The contention of the Prime Minister and the results of the steps spelled out by Hafeez Shaikh have been corroborated by positive economic indicators that have emerged during the first quarter of the current financial year.
The first endorsement of the recovery narrative came from Moody’s which upgraded Pakistan’s economic outlook to ‘stable in August 2020.Reportedly foreign remittance increased by 26.5% while foreign direct investments jumped up by 9.1% reflecting the confidence of the Pakistani expatriates and the foreign investors in the newly acquired vibrancy of the economy as a result of the prudent economic policies being pursued by the PTI government. Tax collection also indicated upsurge by 4.5 and primary balance moved into surplus domain.