ISLAMABAD: Prime Minister Nawaz Sharif despite facing rough six months of street protests, weak economy and law and order situation, has managed to start turning around the country’s economy, Bloomberg reports.
“Lower oil prices, higher remittances and increased consumer spending are pushing growth towards a seven-year high,” the media company headquartered in New York City said in an article.
Bloomberg, that gives independent opinions on financial, political and economic issues, mentioned that Nawaz Sharif has seen street protesters aiming to nearly oust him, some of the worst fuel shortages and a child massacre that shocked the world.
However the article said that despite these challenges, the “Corporate earnings are soaring, stocks have surged and the currency is among the world’s top performers.The article stresses that while much more needs to be done to fix an economy dependent on financing from the International Monetary Fund (IMF), the perception of Pakistan is starting to change.
“Sharif’s government has improved things with the help of the IMF,” Sayem Ali, head of investments strategy and advisory at Standard Chartered Plc’s Karachi unit, said by phone.“They have put Pakistan back on the radar in terms of international investors.”
When Sharif took power in May 2013, he faced a balance-of-payments crisis that forced him to seek help from the IMF.“Foreign exchange reserves have doubled in the past year to $16 billion, the budget deficit has narrowed and inflation is easing as global oil prices fall,” the article said.
Pakistan last month said it regained its eligibility to borrow from the International Bank for Reconstruction and Development, making it eligible for $2 billion of credit over the next four years. The IMF also is optimistic it will meet the conditions of the $6.6 billion loan it received two years ago.