The Pakistani economy brings hope to a region characterized by economic struggles and political tensions with a progressive national brand.
At the end of 2015, the Pakistani economy showed resilient strength in a partly overshadowed region by conflicts and economic uncertainty. The country cut its deficits in half with a model, which will set a pace for economic prosperity in the region if steadfastly pursued.
Pakistan is a country in South Asia, sharing borders with India, China, Afghanistan, and Iran. It is an important country, being the 7th largest country globally in terms of population.
What makes the Pakistani economy relevant is its geopolitical and economic position with neighboring countries, which are always the center of attention for the world. The spotlight on these nations stems the from lack of economic opportunities or regional tensions and war on terrorism.
Pakistani economy in a nutshell
Most people around the world don’t regard the Pakistani economy as a progressive and developing one. Like its neighboring country, Afghanistan, the signs of terrorism are a prevailing issue. But the Pakistani economy has showed economic strength.
Pakistan is a growing nation with a moderate social society and has problems like many other progressive nations, like energy issues and infrastructural problems. The Pakistani economy is moving forward in terms of its economic success, regardless of the issues with neighbors and terrorism. The Pakistani economy reveals a national brand of financial success.
According to the state bank of Pakistan, in the fiscal year 2014-15, the Pakistani economy and overall GDP powered up to 4.2%. Its foreign exchange earnings made a record amount of $20 billion. The country's fiscal deficit decreased at a steep rate of over 50 per cent.
In the year 2013-14, the county’s deficit rose to $2.931 billion but reduced in 2015 to $1.364 billion. Exports in this fiscal year were around $23.465 billion, whereas the imports recorded $36.676 billion. There is still an opportunity to bridge the gap between imports and exports, but recent developments show the Pakistan economy is on the right economic path. In almost two years, inflation has dropped from 12% to a low 6%, which is an excellent indicator of progress for the Pakistani economy.
It is important to know that Pakistan’s purchasing power is more significant than many developed nations in the world. In the last few years, the Pakistani economy did well, compared to some major countries in the global economy.
The year 2015 to date has been reasonably well for Pakistan. The country’s economic indicators, whether macro or micro, have been pointing in a positive direction. Inflation is on a decline. The GDP ratio is on par with the government's target and the International Monetary Fund (IMF) benchmark. Considering a few years back when Pakistan was on the brink of bankruptcy, this is a forward-looking development for the Pakistani economy.
A new geopolitical and economic talk with China known as the China-Pakistan Economic Corridor (CPEC), which will cater to 17 percent of its GDP. This is a game-changer for Pakistan on its economic front.
The total project will be around $45 billion, with the investments coming from China. The CPEC investment will include many power projects, completion of Gwadar Port, complete road infrastructure for the transit routes, and many more.
In the coming years, most of Pakistan's economic development will center on the CPEC project and its economic impact both in the country and in the region. CPEC will affect the economic progress and the future of the Pakistani economy.
The Editorial Staff
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