Given its location, landscape, environment, weather, shores and fertile land, Pakistan had always been the most potential and business friendly destination offering volumes of dividends to investors and businessmen.
Although fluctuating policies of the past landed this potential state into serious economic crunch with putting it back on track becoming a gigantic task, yet it can be vibrant again if consistent, holistic and result oriented approach is adopted.
Even today, the numbers of brotherly countries are waiting for a nod to invest billions of dollars in different sectors of Pakistan economy and the newly formed government has already tightened belts for a tough ride ahead.
Prime Minister Shehbaz Sharif and his team is also aware that they would be confronting a myriad of daunting economic hurdles, ranging from soaring inflationary pressures and staggering external debt burden to diminished exchange reserves and fluctuating currency values.
As the economic panorama, shrouded in uncertainty and volatility, necessitates adept navigation and resolute action to guide nation towards stability, the government diligently articulated its resolve to fight out this challenge.
At the head PML-N led new coalition government, Prime Minister Shehbaz Sharif soon after assuming office, issued directives to pertinent authorities for formulating proposals to reduce government expenditures and undertaking a comprehensive overhaul of country’s economic framework.
Responding to this exigency, the new government employs immediate measures for bolstering revenues and curbing escalating fiscal deficit with the Prime Minister also mandating commencement of digitization and automation process within the Federal Board of Revenue (FBR).
“Reducing inflationary burden on people is one of the most pressing challenges for the government. It would have to go for immediate solutions to ease inflationary burden,” said Dr Usman Chohan, Advisor on Economic Affairs at Centre for Aerospace and Security Studies (CASS).
He said the situation would be more exigent in an environment where on one hand the people would be expecting to bring down inflation while International Monetary Fund (IMF), in a likely follow-up program, pressurizing the government to extract more from public in terms of revenue collecting and electricity price initiatives.
Identifying global economic slowdown as a significant contributor to Pakistan’s financial woes, with inflation, energy costs and purchasing power constraints exacerbating the situation, Dr Usman proposes a roadmap for economic recovery.
“Mobilization of government-to-government (G2G) investments from friendly nations through the Strategic Investment Facilitation Cell (SIFC) can be very important,” he pleaded and underscored the inevitability of domestic stability, particularly in monetary affairs, to reignite local investment.
“Then, we must provide overseas Pakistanis a conducive and secure investment climate, thereby stimulating economic activity,” he further commented.
Given the situation on ground, economic experts stress urgency of implementing concrete measures to foster a business-friendly environment conducive to economic growth and job creation.
“There would be need for a GDP growth rate of 7 to 8 percent to generate approximately three million jobs annually,” said Nadeem-ul-Haq, Vice Chancellor, Pakistan Institute of Development Economics (PIDE). “The daunting figures of excessive debt, coupled with stagnant industrial development and low GDP, accentuate the complexity of challenges at hand.”
In a Podcast he emphasized the imperative of nurturing an environment conducive to corporate growth that in turn, catalyzes economic expansion.
In this scenario, what direly needed is foreign investment as well as expansion in local investment base to put economy back on track to achieve desired growth rate, employment generation, boosting exports and earning foreign exchange.
Fully cognizant of the challenges and potential opportunities Pakistan can offer to investors, Federal Minister for Finance and Revenue, Muhammad Aurangzeb has also outlined key priorities for revitalizing the economy.
Emphasizing significance of digital transformation and documentation, he stressed the need for modernizing tax system to ensure transparency and efficiency. This involves also digitizing Federal Board of Revenue (FBR) to streamline tax collection processes.
Additionally, plans are underway to expand the tax base by incorporating sectors such as wholesale/retail, real estate and agriculture. Aurangzeb highlighted that digitalization is not an end in itself but a means to foster economic growth and equitable tax systems.
While the road ahead may be arduous, concerted efforts to harness the economic potential of Pakistanis, both domestically and abroad, alongside fresh agreement with International Monetary Fund and the support of friendly nations, offer a glimmer of hope in navigating through these turbulent economic waters.
As the country also suffered a lot in recent past due to rumors of default and anti-state politicking, there is also need for curbing the menaces like rumor mongering, malicious propaganda against state as well as bring anti-sate actors to justice.
The avenues are there and so are the opportunities and what we need is to put our house in order first with strict implementation of laws and zero tolerance against exploiters.
Peaceful environment and proper law and order would also be imperative to embark on a journey focused straight to our destination of progress and prosperity – where we proceed unhindered and daring every challenge coming its way.