A recent meeting of the Economic Coordination Committee has decided to import 200,000 metric tonnes of sugar to build strategic reserves as countermeasures because the government expects speculative forces to drive the price up. Rs18 billion has been set aside for the import of the necessary sweetener.
Imran Khan government has started work to comply with the FATF's recent and most challenging points given in the recent plenary. The implementation of these points would tighten the regulations for Pakistanis who have investments abroad.
Pakistan's Current Account has fared pretty well on the back of high capital inflows from remittances and the textile sector, but the recent downward trajectory shows that government needs to work on policy reforms to diversify the export portfolio and maintain the promised "sustainable growth".
Aqeel Karim Dhedhi while talking to a private media channel said that behind the current plunge in the economic indicators there is a sign for the hope that will be visible in some time as the local economy heading towards expansion. He also suggested solutions to the energy sector's problems.
The reforms will increase the normal limits on access to concessional financing by 34 percent, coupled with the elimination of hard limits on access for the poorest countries. This would increase the flexibility of funds disbursement according to the need of the related countries.
As the new fiscal year 2022 begins, the experts argue government's macroeconomic direction seems to go in a direction that is inflationary by every standard, increasing the burden on the people and will make the far-reaching economic targets difficult to realize.
ECC on Friday also decided to import 200,000 tons of sugar to maintain strategic reserves and has decided to focus more on the bottom-up approach to decrease poverty with its many new initiatives announced.
Circular debt, Pakistan’s bleeding wound has been the anathema to economic progress and social alleviation for many years. With the approval of the financial setoff mechanism for government-owned entities by ECC, circular debt may decline. Should we take it with a grain of salt or is there some weight in this?
Pakistan on the right track of economic development despite global challenges. However, if the hurdles are not handled tactfully, it may hamper the stability and growth rate of the economy, experts warn.
Finance Minister Shaukat Tarin gave this order while presiding over the National Price Monitoring Committee (NPMC) on 12th July, while he expressed satisfaction over the decrease price trend for sugar in the country.
The hurdles to growth in the economy such as protectionism spearheaded by trade policy are affecting the productivity. Pakistan can unlock it's growth potential by taking some key policy measures as suggested by Mr. Shahid Sattar, the executive director of APTMA. For one instance, textile exports can increase to $20 billion by 2021 but this requires one key input:
There is a need to recognize that locally manufactured urea can become one of the top exports of Pakistan without any additional investments by the industry, which can be an essential component for the government’s Vision 2025 which seeks to elevate Pakistan’s position from a lower middle income to an upper-middle income country by pursuing an ambitious, export-led growth strategy.