Economic survey 2015-16 of Pakistan

Rising GDP and positive macroeconomic indicators achieved in early years of Musharraf regime came crashing down towards the end of his reign.  This downward pattern continued till 2014 when we saw a turnaround in the economy of Pakistan. 2015 and 2016 have brought some positive news for us but we have to travel miles in order to achieve what we have to achieve.

The economic survey of Pakistan shows that GDP growth during 2016 was 4.7 percent which is quite better compared to the era of PPP. During PPP government the GDP growth rate was around 2 to 3 percent. The inflation rate has decreased to 2.8%, the lowest of the whole decade. The increase of foreign remittances from to 16 billion dollars is another major milestone.

Furthermore, the increase in Industrial and services sector is another remarkable achievement of the Nawaz Government. Karachi stock exchange has again emerged as the best of the region outclassing the regional stock markets including that of Indian stock exchange. This shows the renewed confidence of foreign and domestic investors in our country.

According to analysts the reason for this relatively better economic stability is the restoration of law and order in the country in wake of Zarb-E-Azab operation and the significant reduction in oil prices in the global market. Furthermore, loans provided by IMF have also played in key role in increasing foreign exchange reserves but this loan can prove disastrous in long term.

These were some goals that Pakistan achieved successfully or with relative success but we have also suffered from major setbacks. The major economic setback is the reduction in foreign exports. Exports which were standing at more than 20 Billion dollars during 2012-13 have shrunk to 18 Billion dollars during 2015-16. Poor performance in agriculture sector is another major setback for our economy. Agriculture being the backbone of our economy should have been the focus but has not been the case and growth rate in this sector has drastically reduced. Another worrisome point is the decrease in net foreign direct investment in our country.

The shortcomings were the result of our own carelessness towards these key areas of the economy but there were some national and international reasons that contributed to it. The fall of the price of daily food commodities in the international market is one of the major reasons for the under-performance of our agriculture sector. Another reason which contributed to this is the law and order situation.

Though law and order situation has improved dramatically after the country-wide operation yet still we can see incidents that scare foreign investors from coming into Pakistan.

Though there are shortcomings yet overall our economy is doing well and the completion of projects under CPEC will add another 3 to 4 percent to our National GDP, which will make Pakistan one of the fastest growing economies in the region. The inauguration of Gawadar port a few months ago was a landmark achievement in leading our country towards economic prosperity, this port will open new routes for Pakistan to reach Middle Eastern, Central Asian and European markets.