Needless to emphasize that the nosedive in the economy of Pakistan has been reversed and the country is now well on its way to economic recovery and stability notwithstanding persistent efforts by its external and internal ill-wishers to torpedo this process by fomenting political instability in the country. Thanks to the prudent handling of the challenges that confronted the country by the incumbent government, its successful negotiations with China, Saudi Arabia and UAE for roll-over of their loans for one year that helped Pakistan to secure Extended Fund Facility to the tune of $7 billion from IMF.
The success story is corroborated by the fact that inflation has fallen to below seven per cent, interest rates are declining, both exports and remittances have registered encouraging enhancement, foreign exchange reserves have crossed the $ 10 billion mark and the stock market is breaking records. These are irrefutable facts and have been endorsed by the international lending and rating agencies.
The World Bank expects Pakistan’s economic recovery to continue, with GDP growth reaching 2.8 per cent in FY25, driven by the lifting of import restrictions and lower inflation. Business confidence is expected to improve following recent credit rating upgrades, the continuation of the IMF-EFF programme, reduced political uncertainty, and the implementation of fiscal reforms such as devolving constitutionally mandated expenditures to the provinces.
IMF also has similar views on the present state of Pakistan economy. Its Resident Chief in Pakistan Esther Perez Ruiz speaking at a discussion organized by Sustainable Development Policy Institute Islamabad recently said “The post-Standby Arrangement in July 2023, the confidence in policymaking has improved with inflation plummeting to its lowest level in three years, international reserves more than doubling and the economy on the course of improvement. Pakistan has managed to revive economic and financial stability over the past fiscal year despite the challenging external environment and destructive impacts of the 2022 floods”.
Recently Chinese Prime Minister Li Qiang paid four-day visit to Pakistan during which he will also participate in the SCO summit. He had meetings with Prime Minister Shahbaz Sharif and the military leadership in which he reiterated Chinese commitment to continue working with Pakistan to uphold the principle of planning, building and benefiting together. During the visit 13 MOUs were also signed to fortify cooperation in security, education, agriculture, human resource development and science and technology besides expression of commitment to the high-quality development of second phase of CPEC. The Chinese Premier also virtually inaugurated Gawadar Airport and noted that it was a critical step in building Gawadar into a regional hub of connectivity.
A 135-member Saudi delegation headed by Saudi minister for investment Khalid Bin Abdul Aziz Al-falih also visited Pakistan a few days ago. During the visit several agreements and memorandums of understanding were signed for $2 billion Saudi investment in Pakistan. It is pertinent to mention that the Saudi Crown Prince Salman Bin Abdul Aziz had also announced $5 billion investment in Pakistan during Prime Minister Shehbaz Sharif’s visit to Saudi Arabia shortly after he took office.
The Saudi minister speaking at the Pakistan-Saudi Business Forum said” Ties between my country and Pakistan have no limits and same applies to our economic cooperation. We must strengthen Pakistan’s economy. Pakistan has quickly stabilized its economy. We are family not friends. Pakistan and Saudi Arabia do not need formal agreement to prove it. Our economy and social values are linked together. As many as 2.5 million Pakistanis are working in Saudi Arabia.”
He also appreciated the role of Special Investment Facilitation Council (SIFC) for Saudi Arabia in regards to Saudi Investment in Pakistan and observed that the COAS made it a point to turn the red-tape bureaucracy into a red-carpet for the Kingdom. The minister was right on money to mention the role that SIFC has played in removing bottlenecks in securing foreign direct investment particularly the efforts by COAS General Asim Muneer in this regard.
China and Saudi Arabia are true friends of Pakistan which have always been there to help Pakistan to wriggle our of economic crisis and their ties with the latter are truly quintessential of a saying by Brazilian lyricist, an eminent literary figure and winner of several international awards Paulo Coelho de Souza” Friendship is not about whom you know the longest. It is about who came and never left”.
The foregoing developments portray an encouraging picture about the prospects of sustainable economic growth in the future provided the pivotal catalyst of political stability is ensured. Unfortunately the things in this regard are not very encouraging. The PTI is hell-bent to create chaos and political instability in the country ostensibly with the aim to sabotage economic recovery obsessed by the fear of losing relevance. As economic stability begins to take hold, there is a growing sense that the ruling government will be less vulnerable to pressure, both politically and economically. If the current trend continues, economic growth could soon follow, further consolidating the government’s position.
That approach is undoubtedly inimical to the state interests which take precedence over all other things. Politics is done to strengthen the edifice of the state and not to strike at its foundation.
The country needs political stability more than ever before to winch itself out of the economic quagmire. Therefore PTI must do serious rethinking concerning its creed of false political narratives and unnecessary protests to create turmoil in the country. The best forum is the parliament where they can agitate their cause. As far as securing release of Imran Khan through protests by putting pressure on the government, it is a very naïve approach. Imran Khan is in prison facing charges of corruption and the courts are dealing with it. The party must have faith in the courts to do justice instead of bringing people on the streets and disrupting the civic lives in Islamabad and other cities.
