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Saturday, April 13, 2024

Did Pakistan economy really progress under PM Khan?

The country’s current account deficit (CAD) shrank by 78.46 per cent to $545 million in February from a whopping $2.531 billion in January mainly on account of a sharp decline in the imports.

As the opposition moves its vote of no-confidence against the government and the speaker summons the National Assembly session on 25th March, the country’s political future looks uncertain. Whether the government would be able to put up a strong defense against the opposition’s onslaught is still unknown. Moreover, the uncertainty in the international market because of the Russia Ukraine conflict further exacerbates the situation. In this time of political turmoil and uncertainty, a financial services firm of one of the oldest and top financial groups in Pakistan highlighted the recent developments in the economic sector and presented an analysis. The report underlines all the positives and the negatives the country has going for it. We at the Global Village Space compiled that list in an attempt to provide a snapshot to our readers of what’s happening in the country.

Current account deficit shrinks 78pc in February – Positive:

The country’s current account deficit (CAD) shrank by 78.46 per cent to $545 million in February from a whopping $2.531 billion in January mainly on account of a sharp decline in the imports.

Read More: Current account deficit shrinks by $2 bn in February

Big industries expand 7.6% in Jul-Jan – Positive:

Large industries of Pakistan posted 7.6% growth in the first seven months of current fiscal year on the back of increase in output of almost all major industries after the downward growth paused for the first time in five months.

Discussions constructive: IMF official – Positive:

The International Monetary Fund (IMF) has said that the discussions with Pakistan are constructive to reconcile and try to meet the key objectives of the programme of fiscal prudence, external sector viability, due protection of vulnerable groups from high international energy and food prices.

Pakistan, TCC reach out-of-court settlement on Reko Diq project – Positive:

An out-of-court settlement of the Reko Diq project in the Chagai district of Balochistan has been finalised and an official announcement in this regard will likely be made in the evening, sources familiar with the development said on Sunday.

Read More: The Reko Diq Conundrum and lawfare against Pakistan

Barrick to restart Reko Diq; penalty to be waived – Positive:

The federal and provincial government of Balochistan have signed a new agreement with Barrick Gold Corporation of Canada for extraction of gold and copper reserves from Reko Diq with an investment of US$10 billion.

POL products; Rs114bn collected through PL – Neutral:

The federal government has been able to collect a revenue of Rs114 billion through Petroleum Levy (PL) on petroleum products, an official of the Petroleum Division told Business Recorder.

Urea plants: uninterrupted gas supply ‘in the pipeline’ – Positive:

Economic Coordination Committee (ECC) of the Cabinet has directed Petroleum Division to put a proposal for uninterrupted gas supply to M/s Fatimafert (Sheikhupura plant) and M/s Agritech Mianwali throughout the year, official sources told Business Recorder.

Non-textile exports jump 26pc to almost $8bn – Positive:

Pakistan’s non-textile exports grew 25.6 per cent year-on-year to $7.95 billion in the first eight months of the current fiscal year owing to a partial revival of international orders and the government’s support schemes.

Energy, food, metals push imports to record high – Neutral:

Imports of energy, edible oil, Covid-19 vaccines, iron, steel, and its scrap in the first eight months of this fiscal year have doubled compared to last year, widening the trade deficit massively, Pakistan Bureau of Statistics (PBS) data showed on Saturday.

Read More: Nawaz Sharif will return home if no-confidence motion succeeds

No-confidence motion: Speaker summons NA session on March 25 – Neutral:

National Assembly Speaker Asad Qaiser has summoned the session of the National Assembly on March 25 at 11 am at the request of the opposition parties who filed a no-confidence motion against Prime Minister Imran Khan on March 8.