The economy in decline

Pakistan’s economy is standing on shaky ground. Exports are stagnant despite the hefty devaluation, while there is an insignificant decline in the imports of goods. The imposition of regularity duties has not dampened the demand for luxury and avoidable foreign goods as affluent people are willing to pay higher for imported goods. FDI has plunged while domestic investors are also wary of investing their money because of uncertain and inconsistent policies. The manufacturing sector has not been revived as a result of which dependency on imports remains intact. Reserves have tumbled from $10 billion to just $8 billion despite borrowing $8-9 billion during the last six months from friendly countries.

The economy remains in a disappointing state while the protracted negotiations with the IMF do not appear to end soon. The economy has not been managed wisely so far as the fundamental challenges remain unaddressed.

Huma Arif

Karachi