Pakistan is set to revise its free trade agreements (FTAs) as it tackles serious economic challenges. Special Assistant to the Prime Minister (SAPM) Haroon Akhtar shared this news during a press conference on Saturday. He highlighted issues such as pressure on foreign exchange reserves and a rising trade imbalance as key concerns.
Akhtar pointed out that when Pakistan’s economy grows, the import bill increases sharply. He said this puts stress on the country’s limited reserves. He criticized past FTAs for being poorly negotiated or rushed, which harmed the country’s economic balance. As a result, imports have surged, while exports have not kept up.
Additionally, Akhtar announced plans to introduce a bankruptcy law for struggling businesses. He noted that high interest rates and energy costs are driving companies towards closure. The proposed law aims to provide a path for businesses to recover instead of shutting down, helping strengthen the economy in the long term.
Finally, he emphasized the need for more domestic investment to boost foreign exchange reserves. Akhtar believes that attracting local investments can create a stable economy. His comments arrive as Pakistan works towards implementing policy reforms and improving economic conditions.