Prime Minister Shehbaz Sharif has emphasized that to elevate Pakistan to new heights of development, it is crucial to work day and night. The Islamabad Technology Park will be Pakistan’s first Category 3 technology park in accordance with international standards, creating 10,000 job opportunities. Furthermore, Prime Minister Sharif has stated that no delays will be tolerated in the implementation of memorandums of understanding with China.
Due to Prime Minister Sharif’s policies, signs of improvement are beginning to emerge in the country’s economy. Undoubtedly, these efforts are resulting in increased investment, national wealth, job opportunities, and economic prosperity. It is clear that Shehbaz Sharif is tirelessly working day and night for the country’s development and prosperity, having even announced that he will not take weekends off.
We can say that, although the next couple of years may be challenging, prosperity will eventually come. A country’s economic development is closely tied to its stable political environment. History suggests that no revolution has occurred in countries with strong economies. After enduring severe economic conditions in recent years, positive signs are now emerging in Pakistan’s economic landscape.
On the other hand, Pakistan-China relations have withstood every test posed by the changing international environment and remain as strong and unshakeable as a mountain. Both parties maintain unwavering strategic mutual trust, effective practical cooperation in various sectors, and close collaboration on international and regional matters. China has emerged as a robust global economy, and Pakistan can learn much from its development.
New avenues of cooperation are opening between Pakistan and China in information technology, communications, minerals and mining, and energy sectors, which will enhance economic development, strengthen regional connectivity, and deepen bilateral relations.
Just a few months ago, Pakistan had only 15 days’ worth of foreign exchange reserves for paying import bills—meaning it had enough dollars to cover two weeks’ worth of imports.
However, economic indicators now show signs of recovery in this weakened economy after several months. The elimination of subsidies in the energy sector and the establishment of fiscal discipline have started to bring economic stability.
Despite a low tax rate relative to GDP, there has been minimal gap in tax collection. To create resources for development budgets, better tax policies and administrative measures, as well as overall social and economic development and improvement in public governance, are required.
For stability to take root and benefit the general populace, policy continuity and consistency are crucial.
The federal government has released a three-year economic plan with targets outlined under the Medium-Term Budget Strategy Paper. The plan includes estimates for the fiscal years 2024 to 2027, aiming to increase the economic growth rate to 5.5% over three years.
For the current fiscal year, GDP growth is expected to be 3.6%, with efforts to reduce inflation and the fiscal deficit. Experts note that the current account deficit in Pakistan is influenced by low economic growth and high inflation, with increased exports also playing a role. Remittances have shown improvement in the past two months and are expected to continue rising.
Reports from the Asian Development Bank, the State Bank, and the Bureau of Statistics indicate that Pakistan’s economic performance is heading in a positive direction.
According to experts, Pakistan’s economy is now on the right track. Compared to 2023, the economic situation is better this year, and if this trend continues, inflation is expected to decrease to 15% by 2025. The Economic Outlook Report highlights the stability of the Pakistani rupee against the dollar and a positive trend in the Pakistan Stock Exchange.
GDP growth is expected to be between 2% and 3%, with agriculture being a key driver of this growth. In fiscal year 2024, bumper crops of wheat, rice, corn, and cotton are anticipated, with agricultural sector growth exceeding 7%.
Remittances from overseas Pakistanis have also increased, reaching a record of over $3 billion. Due to positive economic indicators and the potential for receiving funds under the IMF agreement, the stock market is currently experiencing significant growth.
The Federal Budget 2024-2025 was expected to distribute the burden between the general public and the elite, but history seems to repeat itself with the burden falling primarily on the poor and salaried individuals.
Additional taxes totaling 30 trillion rupees have been imposed, resulting in a budget deficit of 8.5 trillion rupees. Government officials possess a large number of vehicles, incurring billions in fuel and maintenance costs, and there are significant expenses related to free electricity, gas, and government accommodations.
Such practices are unparalleled in any other country. Corruption and bribery are rampant, and the poor struggle to access basic necessities. To address the budget deficit, the focus should shift towards the wealthy rather than the impoverished, avoiding dependence on the IMF. The path forward lies in upholding the rule of law and respecting the decisions of the people.
Traditional bureaucracy has always been the biggest obstacle to Pakistan’s economic development. Even if a ruler makes necessary decisions in the public interest, implementation often gets bogged down in red tape.
The decline of organizations like WAPDA, Railways, PIA, and Steel Mills is due to corrupt bureaucracy, incompetent and corrupt ministers, and powerful family networks exploiting the country and its people for personal gain. Compared to developed nations, Pakistan lags far behind even its neighboring countries in terms of education.
Pakistan ranks 180th out of 194 countries in literacy rates, meaning it is only ahead of 14 countries in this regard. Experience has shown that without knowledge, no sector can advance or build effectively. For economic and social development, acquiring modern knowledge, technology, and research is crucial.
We must ensure that our educational institutions open doors to all branches of knowledge, whether in natural sciences, engineering and technology, medical and health sciences, agricultural sciences, or social sciences.
It is essential to rapidly advance education in agricultural sciences due to increasing population, climate changes, food shortages, and dwindling water resources. Modern agricultural science education can lead to higher yields, reducing food scarcity and increasing farmers’ profits.
Additionally, exporting surplus agricultural produce can bring substantial foreign exchange to Pakistan. Although there are agricultural universities in Pakistan, the expected benefits are not fully realized. By advancing education in agricultural sciences, we can significantly increase crop yields per acre.