Onwards on the path of progress.

Byline: Muhammad Zahid Rifat

Pakistan is gradually moving towards the path of progress, development and prosperity as well as the formation of a welfare state by continuing to overcome challenges on internal and external fronts collectively by the federal government and the people.

PTI's federal government came into power following free, fair and peaceful elections in 2018. As such, it has already moved into the third year of its stipulated constitutional tenure. The first year was dedicated towards taking measures for the recovery of the national economy. The second year, just when economic indicators suggested an upward trajectory, was consumed in fighting the pandemic, saving the lives of the people and helping the poor as much as possible given the available resources. The third year, which is already five months old, is going to be the year of growth.

As far as Pakistan's overall economic outlook is concerned, weaknesses like the low tax ratio to Gross Domestic Product (GDP), poor savings rate and minimal export growth with negligible value addition were further attenuated by misaligned monetary policies and an overvalued exchange rate which made it difficult to control deficits of fiscal and current accounts. However, the shift in economy policy undertaken by the incumbent federal government through adjustments and structural reforms has changed the course entirely. The stabilisation measures implemented to reduce the deficits had a profound impact on economic activity.

As a result, for the first time in many years, the current account showed a surplus in October 2019 and this observation has become a trend. Both fiscal and current accounts of the country continue to show substantial improvement with every passing month. Additionally, a stable exchange rate, healthy growth in Foreign Direct Investment (FDI), improved ranking in the World Bank's business index and a stable credit outlook to B3 reaffirmed the successful policies of the federal government in stabilising the national economy.

Nevertheless, the federal government also remained cognisant of the painful impact of these stabilisation measures in terms of economic slowdown, rising inflation, depleting job opportunities and its impact on the lowest income groups of the society. In the wake of these challenges, the government initiated reforms in key sectors of the national economy through encouraging inclusive growth in agriculture, industrial and services sectors.

Job creation...