Tarde sector has started showing signs of improvement and a latest report says that in the first month of the new government, Pakistan's exports to Afghanistan registered increase by 20.6% on an annual basis and by 12.5% on a monthly basis.

Moreover, there was a huge decrease in imports from the neighborly country by 20.3% on an annual basis.

However, our exports have substantially increased by over 20 percent and 12.5 percent on a monthly basis.

It may be recalled here that our exports to Afghanistan in February 2024 were reported to have been $104 million and the same  were $97 million in March 2023.

Meanwhile reports reveal that imports from Afghanistan have decreased substantially by as much as 49.3% last month Afghanistan.  The volume of imports from Afghanistan was 36 million dollars, while the imports from Afghanistan in March 2023 were 71 million dollars. Experts attribute this enhanced trade activity to Pakistan’s success in parleys with the IMF  to get the loan programme. Meanwhile, according to Kristalina Georgieva, Managing Director of the International Monetary Fund, Pakistan has successfully completed its current program with the IMF, while its economic performance has also improved, but there are still many important issues to be resolved. Speaking at an event held at the Atlantic Council think tank, Kristalina Georgieva said that Pakistan's economy is performing well and foreign exchange reserves are increasing. Pakistan is determined to continue on the path of improvement and is approaching the International Monetary Fund for a follow-up programme.

It is clear from the opinion expressed by the head of the IMF that positive prospects are emerging in the national economy. This is an event that could hardly have been expected in previous years – the country was on the brink of bankruptcy in the early months of 2021. An agreement was made with the IMF on such strict terms that the then Governor of Punjab shouted that the financial institution has written everything from us. After that, the situation was brought to the last level of danger by open violations of the agreement.

However, today, the trend of improvement in the national economy is a fact whose concrete evidence is in front of the whole world in the form of economic assessments of prominent institutions like the United Nations, the World Bank, the IMF and the Asian Development Bank. The Pakistan Stock Exchange is at its highest in the country's history, foreign exchange reserves have increased significantly and dollar volatility has been curbed.

This progress is definitely the result of the strict measures taken during the PDM and then the caretaker government which were indispensable to end the continuation of economic decline.

Due to them, the people of the country had to face difficulties, but now the positive results of these decisions have started.

In the annual report of the Asian Development Bank, it is said that the inflation in Pakistan is expected to decrease in the next fiscal year, the inflation rate will reach 15 percent while the growth rate of the next fiscal year is estimated to be 2.8 percent.

According to the report, if the reforms are implemented in Pakistan, the process of economic recovery will start from this year.

In the report, Pakistan's growth rate has been predicted to be 1.9 percent in the current financial year, while political instability has been described as a major challenge for economic recovery and reforms. In this regard, Kristalina Georgieva, in her speech, emphasized the steps for the successful completion of the ongoing discussions regarding the follow-up loan, including broadening the scope of taxpayers, especially the wealthy classes, to contribute to the improvement of the economy.

These include resolving public issues and creating a transparent environment for economic activities. According to the Federal Minister of Economic Affairs, work is going on in these directions. Barriers to investment promotion and business are being removed and attention is being paid to increasing the role of the agricultural sector in economic development.

In view of these circumstances, it is expected that the talks with the IMF for the follow-up program of the Federal Finance Minister will be successful, for which he is arriving in Washington on a week-long visit. However, for the success of these economic recovery efforts, it is indispensable to ensure the establishment of political stability and peace in the country. For this, government expenditure and incentives will have to be austere to the utmost extent.The cooperation of friendly countries is of primary importance in the efforts that Pakistan is making to get foreign investment for the recovery of its economy. In the visit of Prime Minister Shehbaz Sharif to Saudi Arabia, a major development has been revealed in this regard, due to which the speed of work will be accelerated in the first phase of the implementation of the new investment package of 5 billion dollars between Saudi Arabia and Pakistan. It will be completed as soon as possible. Last year, under the Special Investment Facilitation Council of Pakistan, Saudi Arabia promised to invest in Pakistan in the fields of minerals, information technology, defense and agriculture over the next five years. The joint communiqué issued at the end of the Prime Minister's visit was specially mentioned as an unprecedented symbol of friendship and cooperation and a reflection of the firm commitment to increase business and private investment in both countries. Saudi Arabia was considering a partnership in a gold and copper exploration project at Rekodic. As a result of talks between the Prime Minister and Saudi Crown Prince Mohammed bin Salman, it is expected that Saudi Arabia will participate in a 25 percent stake in the project. Saudi Arabia is also interested in the petroleum sector, which is very important for Pakistan's economy.  The Prime Minister invited the Saudi Crown Prince to visit Pakistan soon, which he accepted. Saudi Arabia's Vision 2030 includes increasing Saudi investment in South Asia.

Saudi Arabia has also been helping Pakistan in every difficult time. Millions of skilled Pakistanis are living in Saudi Arabia for employment, who play an important role in the economy of the friendly Arab country.

In this sense, Pakistan and Saudi Arabia have a special interest in building and developing each other. It is expected that the talks held by Prime Minister Shehbaz Sharif with the Saudi rulers during his short visit will yield far-reaching results that will benefit both countries.

Published in The Daily National Courier, April, 15 2024

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