National economy shifts from stability to growth: PM's coordinator

September 19, 2024 (MLN): The national economy had begun to show steady progress due to the prudent policies introduced by the incumbent government, marking a shift from stability to growth, Rana Ihsan Afzal Khan Coordinator to the Prime Minister on Commerce and Industry stated.

“All economic indicators are moving in the right direction,” he said while addressing a news conference after the Pakistan Stock Exchange (PSX) 100 Index gained over 1,500 points, surging to 81,900, which he called a ‘superb performance’ and a ‘big achievement.’

He noted that the stock exchange’s positive trajectory reflected market-based sentiments and the confidence of investors and entrepreneurs in government policies.

“This indicates that the agreement with the IMF will be achieved successfully, hopefully by September 25, and the national economy will continue on its growth trajectory,” he expressed confidence.

The coordinator added that Pakistan’s shift from ‘stability’ to ‘positive’ regarding its debt liability and external challenges was also being acknowledged by the world’s top credit agencies like Fitch and Moody’s.

Sharing some official statistics, Ihsan Afzal said during the first two months of the current fiscal year, the country’s export sector witnessed a remarkable increase, with textile and clothing exports rising by 13 percent year on year basis, IT services by 27%, and overall exports by 7.2% during July and August.

During the same period, he said the country’s remittances increased by 44%, reaching $5.9 billion, which he termed a ‘massive surge’ reflecting the confidence of overseas Pakistanis in government policies.

Similarly, he mentioned that the current account deficit declined remarkably, standing at $0.2 billion, while the exchange rate against the dollar remained stable and fluctuated according to market trends.

Additionally, 14 sectors in the Large Scale Manufacturing (LSM) area showed positive growth, surging by almost 2.38% year on year, he added.

The coordinator also highlighted the reduced inflation rate of 9.6%, a decline in food inflation to 4 percent from 38 percent, and a gradual cut in the policy rate, which now stood at 17.5%.

In addition, Ihsan Afzal mentioned that the government passed on maximum relief to the common man by bringing down the price of petrol to Rs 249.10 per liter, down from over Rs 330 last year.

Commenting on government policy regarding privatization and the right-sizing of government departments, he said the privatization of Pakistan International Airlines was in the final phase and currently at the ‘buyer-side due diligence stage,’ calling it a ‘milestone achievement’ of the government under the visionary leadership of Prime Minister Shehbaz Sharif.

Citing the recent abolition of the Public Works Department (PWD) as an example, he expressed the government’s resolve to fast-track the merging and downsizing of ‘dozens’ of more departments in the coming days.

Alongside improvements in the national economy, the coordinator mentioned that the government was working to bring judicial reforms to ensure quick dispensation of justice to litigants, with the establishment of a constitutional court as part of the charter of democracy.

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