Current economic situation and the best stimulation.

Byline: Arooj Asghar

Revival of economy is the biggest issue of present day Pakistan. It is important to address this issue just now as country cannot afford any further meltdown, delay in policies making thereafter its implementation. It is being said that government is focusing on the revival of economy and addressing to correct the fundamentals whereas all state institutions are supporting the initiative of the government. Inflation, high interest rates and fear of FBR and NAB are three most important issues presently Pakistan is facing. There was a time when security and terrorism was the prime concern but thanks to the security forces for controlling the terrorism.

It is a well-known fact that business community and business leaders are not comfortable with the economic situation of the country. There are some areas which are of great concern for the business community and they are continuously raising voice against that. Business community is willing to invest in the country but they are reluctant because of high cost of doing business, governance and management related matters.

Federal government has completed its first year without any significant political crisis, yet it is struggling to stabilize the economy, which is its biggest challenge. There is now an acknowledgement even at the government level that Pak Rupee has been devalued in last few months more than what was actually required and now rupee is slowly and gradually adjusting itself. Even an ordinary person can smell the foul play in the manner Pak rupee was devalued.

How was it possible that dollar was appreciated by more than 1 to 3 rupees every day without any significant international payment whereas difference between selling and buying rates went as high as up to 5 rupees. In normal circumstances, the difference between selling and buying rate is usually not more than 2 rupees. This gap itself shows that the devaluation of rupee was artificial and was not market-driven. Currently, rupee dollar parity is being adjusted by the market forces and is evident from the fact that the changes are less than a rupee.

In sheer haste and trying to turn around things in weeks, present government has created an environment of fear, fear of NAB and fear of FBR, this environment has virtually stopped everything in the country. It would have be better if government addressed the matters one by one and in a sequential order rather than opening all the fronts in one go. A systematic...