ISLAMABAD: Pakistan’s finance minister Ishaq Dar said he was optimistic about an economic recovery after the rupee breached the psychologically important 100 to the dollar mark.
The currency had been losing its value against the greenback since Sharif’s PML-N government came to power in June last year, sliding from 97 rupees to the dollar to a low of 108 in December.
Since then it has mounted a recovery and as of Wednesday evening the rupee was trading at 97.90 to the dollar.
Addressing a press conference Wednesday, Dar said: “The price of onions, tomatoes and dollars has been brought down to the level when Prime Minister Nawaz Sharif took oath.”
“It is a positive development for the economy and will boost investors’ confidence into Pakistan,” Dar said, adding the government was not resorting to injecting reserves from the state bank in order to stabilize the currency.
“We did not use State Bank money to strengthen the rupee, but persuaded exporters to bring back their money to Pakistan and checked currency speculation, which resulted in the rising value of the rupee,” he added.
Dar said that revenue from tax collection, which has traditionally been problematic, had increased by 17.7 percent and the budget deficit was down to 3.1 percent as compared to 4.1 percent in the first eight months of last year.
He added that overseas remittences by Pakistanis abroad stood at $9.23 billion, representing an 11 percent growth compared with last year.
Dar said that exports have also shown a 6.2 percent growth while the rate of inflation was currently 8.6 percent.
“We are on track to achieve six percent GDP growth rate in three years and Pakistan can emerge as a strong economy in the region,” Dar said.
The IMF approved a $6.7 billion bailout loan package for Pakistan in September last year to help the struggling nuclear-armed country achieve economic reforms, particularly in its troubled energy sector.
The IMF said Pakistan’s economy was picking up, with growth expected to reach about 3.1 percent in 2013/14 compared to its earlier estimate of 2.8 percent.
Cash-strapped Pakistan, plagued by a bloody homegrown Taleban insurgency, is battling to get its shaky economy back on track and solve a chronic energy crisis that cripples its industry.
The IMF made an initial payment of $540 million, and in November fund officials said during a monitoring visit that Pakistan was “broadly on track” with reforms.
In December, Pakistan received $554 million as a second tranche of the loan.
Pakistan finance minister optimistic after rupee recovery
Pakistan finance minister optimistic after rupee recovery
Saudi retail sector ‘booming,’ industry experts confirm at RLC Global Forum
RIYADH: The potential of Saudi Arabia’s retail sector is unlike any other in the world, industry leaders have told Arab News during a high-profile gathering in Riyadh.
Speaking on the sidelines of the RLC Global Forum, regional and international voices expressed confidence in the Kingdom’s growing role as a hub for the industry’s evolution, diversification, and investment.
Saudi Arabia’s Vision 2030 economic diversification plan, supported by targeted investment strategies and growing collaborations, were cited as key forces driving the nation’s retail transformation.
Dennis Michael, chief business development officer at shopping malls developer Cenomi, told Arab News that Saudi Arabia’s long-term economic framework has laid the foundation for local and foreign partners to operate efficiently and expand.
“From a broad macro perspective, Vision 2030 sets the framework for what we are all trying to achieve and opens the doors of the Kingdom to the world,” he said.
Michael said the Kingdom’s forward-looking vision has been central to Cenomi’s progress in the country, as well as to its strategy for expansion and attracting developers to Saudi Arabia as a retail destination.
“Brands want to come and test the market from time to time,” he said. “If we set up our infrastructure and digital capabilities to empower them, we are enabling them to be part of Vision 2030.”
He said the Kingdom’s defined direction is encouraging developers to rethink retail design, moving beyond conventional shopping malls and toward more experience-driven destinations.
“There is no other place like Saudi Arabia when it comes to openness to new ideas and new brands,” he said. “Young Saudis are globally aware and well-traveled, and they want those experiences to come here,” he said.
Michael added that Westfield Riyadh and Westfield Jeddah show how Cenomi is serving younger consumers while developing destination-led retail.
In food and beverage retail, Chief Operations Officer and Acting Chief Human Capital Offer at Panda Retail Co., Abdullah Al-Sabban, spoke to Arab News on the link drawn between Vision 2030 and the retail sector’s extension to social impact.
“In Panda, we play a big role in supporting consumers and the country at the same time,” he said, adding “We are focusing on initiatives such as humanizing cities and supporting communities through our store network, while ensuring people have access to the goods they need.”
Al-Sabban said that everything in Saudi Arabia’s transformation is moving toward entertainment and “share of wallet,” adding: “We are competing to be present in the way customers want us to be.”
Providing unique insight from a consultancy angle, Gonzalo Brujo, global CEO and president of Interbrand, spoke of the Kingdom’s ability to create a bridge between local and international collaborations as a powerful tool in positioning the Kingdom as a booming retail destination.
Describing the Kingdom as one of the most dynamic and transformative markets, he stated: “Saudi Arabia is booming. There are so many brands and leaders that are best in class, not only in retail but also in sports, entertainment, and tourism.”
On local contribution, Brujo added “Saudis were mainly looking for international brands, now they are looking for authentic local brands that can consolidate in Saudi Arabia and expand across the Middle East and abroad.”
Despite the Kingdom’s ability to leverage its local sources in retail, Brujo pointed to its unique power in balancing between local and foreign partnership in creating its unique retail sector.
“One of the biggest strengths here is combining global expertise with local knowledge,” the global CEO said. “That combination is making the model very successful.”
