Pakistan is a rapidly growing country despite a lot of political and economic challenges. However, its growth rate since 1947 has been better than the global average.
A wide range of economic reforms has resulted in a strong economic outlook.
There has been a great improvement in foreign exchange and currency reserves.
New businesses are opening up across Pakistan which is reshaping its landscape.
The GDP growth accelerated to 4.14 percent in 2013-14 and the momentum of growth is broad based, as all sectors namely agriculture, industry and services are supporting economic growth.
The per capita income in dollar terms has reached to $1,386 in 2013-14.
The agriculture sector accounts for 21.0 percent of GDP and 43.7 percent of employment. It has strong backward and forward linkages. It has four sub-sectors including: crops, livestock, fisheries and forestry.
The industrial sector contributes 20.8 percent in GDP; it is also a major source of tax
revenues for the government and also contributes significantly in the provision of job opportunities to the labor force.
The government has planned and implemented comprehensive policy measures on fast track to revive the economy.
As a result, Pakistan’s industrial sector recorded remarkable growth at 5.8 percent as compared to 1.4 percent in the previous year.
The services sector contains six sub-sectors including: transport, storage and communication; wholesale and retail trade; finance and insurance; housing services (ownership of dwellings); general government Services (public administration and defense); and other private services (social services).
The services sector has witnessed a growth rate of 4.3 percent.
The growth performance in the services sector is broad based, all components contributed positively in growth, Finance and insurance at 5.2 percent, general government services at 2.2 percent, housing services at 4.0 percent, other private services at 5.8 percent, transport, storage and communication at 3.0 percent and wholesale and retail Trade at 5.2 percent.
The three main drivers of economic growth are consumption, investment and export.
Pakistan has a consumption-oriented society, like other developing countries.
The private consumption expenditure in nominal terms reached to 80.49 percent of the GDP, whereas public consumption expenditures are 12.00 percent of GDP.
The government has launched a number of initiatives to create enabling environment in the country including steps to improve the energy situation, law and order, auction of 3G and 4G licenses, and other investment incentives for the investors.
Moody’s recent ratings in favor of Pakistan coupled with jacking up from negative to positive rating of five of its banks — Habib Bank Limited (HBL), Muslim Commercial Bank (MCB), Allied Bank Limited (ABL), United Bank Limited (UBL) and National Bank of Pakistan (NBP) — would definitely boost investor confidence.
The current government has launched a comprehensive plan to create an investment-friendly environment and to attract foreign investors to the country. As is evident, the capital market has reached new heights and emitting positive signals for restoring investor confidence.
The European Union (EU) granted Generalized System of Preferences (GSP) Plus status to Pakistan with an impressive count of 406 votes, granting Pakistani products a duty free access to the European market.
The GSP Plus status will allow almost 20 percent of Pakistani exports to enter the EU market at zero tariff and 70 percent at preferential rates. Award of GSP Plus status depicts the confidence of international markets in the excellent quality of Pakistani products.
Pakistan emerged as one of the best performers in the wake of the global financial crisis, even with a backdrop of a country which waged a costly war against militants.
Its domestically-driven economy was minimally affected and its banking sector boasted surplus liquidity while remaining unharmed, where as on the contrary big economies nearly collapsed during world recession.
Pakistan’s economic outlook is primarily the outcome of effective steps taken by the government, including launching of economic reforms; ensuring stability in exchange rate; reduction in the dearness ratio; successful sale and purchase of sukuk bonds; increased foreign reserves; least government’s borrowings; stabilizing foreign debt servicing balance; and narrowing down fiscal deficit.
The economy of Pakistan is on take-off stage, its foreign exchange and currency reserves have increased.
Pakistan’s GDP has shown stability in recent years due to sustained economic policies of the government and political stability.
Keeping all the circumstances in view, we can say that the economy of Pakistan is on the right track and is on the take-off stage but the only thing required is the continuity of policies, which will make the flight smooth and sustainable.
Pakistan banks on investor-friendly policies
Pakistan banks on investor-friendly policies
Saudi Arabia has told Iran not to attack it, warns of possible retaliation, sources say
Saudi Arabia has told Tehran that while it favors a diplomatic settlement to Iran’s conflict with the United States, continued attacks on the kingdom and its energy sector could push Riyadh to respond in kind, four sources familiar with the matter told Reuters.
The message was conveyed before a speech on Saturday in which Iranian President Masoud Pezeshkian apologized to neighboring Gulf states for Tehran’s actions – an apparent attempt to defuse regional anger over Iranian strikes that hit civilian targets.
Two days earlier, Saudi Foreign Minister Prince Faisal bin Farhan spoke to Iranian Foreign Minister Abbas Araghchi and set out Riyadh’s position with clarity, the sources said.
Saudi Arabia is open to any form of mediation aimed at de‑escalation and a negotiated settlement, the sources quoted the minister as saying, underlining that neither Riyadh nor other Gulf states had let the US use their airspace or territory to launch airstrikes on Iran.
But Prince Faisal was also quoted by the sources as saying that if Iranian attacks persisted against Saudi territory or energy infrastructure, Saudi Arabia would be forced to permit US forces to use their bases there for military operations. Riyadh would retaliate if attacks on the kingdom’s critical energy facilities continued, he said.
The sources said the kingdom had remained in regular contact with Tehran through its ambassador since the US and Israeli military campaign against Iran began on February 28 following the collapse of talks on Iran’s nuclear program.
The Saudi and Iranian foreign ministries did not respond to requests for comment.
Drone and missile attacks on Gulf states
The United Arab Emirates, Kuwait, Qatar, Bahrain and Saudi Arabia have all come under heavy drone and missile fire from Iran over the past week.
Iran’s Supreme Leader, Ayatollah Ali Khamenei, was killed on the first day of the war. Tehran responded by hitting Israel and Gulf Arab states hosting US military installations, and Israel has attacked Lebanon’s Iran-backed Hezbollah armed group.
Araghchi said in an interview on Saturday that he remained in constant contact with his Saudi counterpart and other Saudi officials, adding that Riyadh had assured Tehran it was fully committed to not allowing its territory, waters or airspace to be used for attacks against Iran.
Pezeshkian said Iran’s temporary leadership council had approved suspending attacks on nearby countries – unless an attack on Iran came from those nations.
“I personally apologize to neighboring countries that were affected by Iran’s actions,” he said.
To what extent Pezeshkian’s remarks signal a change is unclear. There were further reports of strikes directed at Gulf states on Saturday.
Also, in a sign of possible divisions within Iran’s leadership, Khatam Al-Anbiya Central Headquarters – the unified combatant command of the Iranian armed forces – said in a statement afterwards that US and Israeli bases and interests across the region would remain targets.
The command said Iran’s armed forces respected the sovereignty and interests of neighboring states and had not taken action against them so far. But it said US and Israeli military bases and assets on land, at sea and in the air across the region would be treated as primary targets and face “powerful and heavy” strikes by Iran’s forces.
US President Donald Trump said in a social media post that Iran had “apologized and surrendered to its Middle East neighbors, and promised that it will not shoot at them anymore. This promise was only made because of the relentless US and Israeli attack.”
Two Iranian sources confirmed that a call had taken place in which Riyadh warned Tehran to halt attacks on Saudi Arabia and neighboring Gulf states. Iran, they said, reiterated its position that the strikes were not aimed at Gulf countries themselves but at US interests and military bases hosted on their territory.
One Iranian source said that Tehran had in response demanded that US bases in the region be closed and some Gulf states stop sharing intelligence with Washington that Iran believes is being used to carry out attacks against it.
Another Iranian source said some military commanders were pressing to continue the strikes, accusing the US of using bases in Gulf states and these countries’ airspace to conduct operations against Iran.
Iran had in recent years mended fences with its Gulf neighbors, including former regional archrival Saudi Arabia. The diplomatic campaign imploded in the blitz of drones and missiles launched by Iran’s Revolutionary Guards in the past week.
