Pakistan’s State of Economy

Pakistan’s Economy
The IMF recently approved a $7.6 Billion loan in support of Pakistan’s economic stabilization programme. According to the Director of IMF (middle-East & Central Asia) Mr Masood Ahmed, ” Pakistan’s economy is at a critical juncture. Inflation has doubled and is now running at 25 per cent, the value of the rupee has fallen by a third since March, and foreign exchange reserves are down to worrying levels. All this is occurring against the backdrop of the worst international economic crisis in sixty years.”

The current Government of Pakistan has adopted a comprehensive program of macroeconomic stabilization and sustainable development. This memorandum sets out Pakistan’s economic and financial policies for November 2008–June 2010, to be supported by the International Monetary Fund (IMF) under a 23-month Stand-By Arrangement (SBA). While the Government looks at ways to adjust Pakistan’s economy, there are important measures that should not be overlooked as important priorities:

1) A comprehensive export strategy for Pakistan. We recommend a strong government backed export portal that can identify all possible suppliers in one marketplace. Substantial funds should be allocated to finance export companies to market their products overseas. We recommend Pakistan exporters to more aggressively develop strategic alliances with international counterparts. There should be a continuous exhibition program financed by the Government and various States for exporters to display Pakistani products overseas. We recommend contacting all Pakistani Cultural associations in the United states and Europe for assistance and support. Exporters should look for both supplying their products and for international companies to invest in Pakistan as part of joint ventures. Just look at where China was in 1979. That was not too long ago. Since then China/ Hong Kong have developed a vary aggressive export promotion programme that must be duplicated in Pakistan on a fastrack. It is ActionPakistan’s opinion that exports and investments/joint ventures would create an outstanding opportunity for Pakistani manufacturers and exporters.

2) Infrastructure investment

Similar to what U.S. did in the great depression and what the current Obama Government just started, we highly recommend Pakistan to develop a comprehensive infrastructure plan to improve roads, dams, canals,sanitary & sewer , power lines, alternative energy , and a range of other projects. The National Public Work Corp (NPWC) as discussed elsewhere in this forum would create tremendous opportunities for young professionals and will provide jobs for the unskilled labor force while giving them skilled training.

3) Micro development loans
Government should offer loans and matching  funds to all households and businesses who want to either expand their business or remodel/expand their properties. This is a great economic stimulant. It creates a vibrancy in the marketplace and adds confidence to the economic environment.

Economy is the core of what a nation is able to do. Without a sound economy, no projects can be implemented.  There are many more solutions to strengthening Pakistan’s economy. We welcome this debate and hope that our viewers will actively participate on other solutions.