Factors that are affecting Pakistan’s Economy

Pakistan stands among the top five most populated country around the world with 208 million people. The population growth rate in Pakistan s around 2.4 percent per year. This rapid growth in population is affecting the country’s economy and also raising several issues like health, education and environmental issues.

There is a survey conducted by the United Nations Population Fund. The report was launched on Wednesday holding the title State of World Population 2018.

Pakistan’s Economy

Report about the size of the families

According to the report the size of the family is likely to link with many other rights including education rights, jobs rights, and healthcare rights. Those nations flourish where people actually exercise their rights. And where these rights of people are stopped, people often face challenges in achieving the complete potential. According to the report The Power of Choice – Reproductive Rights & the Demographic Transition, this inability to getting rights hinders social and economic progress.

 

Issues with the economy of Pakistan

The current economy of Pakistan is facing several issues. In the first three months of this fiscal year, the exports and inflows from remittances have also been increased. However, the boom in oil price is also pushing the current accounts in deficit. On the other hand, on September closings, the foreign exchange reserves also face challenges and Pakistani currency also fell against the U.S. dollar in October. After seeing this situation the government has increased the import duties on around 5,000 items. However, the finance minister also made an announcement regarding seeking a loan from IMF.

The famous top-notch business tycoon and philanthropist, Aqeel Karim Dhedhi always have Hawkeye in the economic situation of Pakistan. While talking about current economic turmoil he seemed quite hopeful from this new government. According to Aqeel Karim Dhedhi, Asad Umar, the current finance minister has the ability to put his best foot forward for the betterment of the country. AKD believes that Asad Umar and his highly qualified and professional economist will be able to bring out some better economic results. The effective economic policies can make the current economic situation better.

According to Aqeel Karim Dhedhi, if we take a loan from IMF that means the devaluation of currency and an increase in the rate of interest. However, this situation may get worse if the investors will take out their money from the stock exchange investments. Aqeel Karim Dhedhi also thinks that the involvement of international actors also hindering the economic growth of Pakistan.

However, if we see the current KSE-100 index which lost 4% of its worth which feared investors about the exclusion of some of the stocks from MSCI emerging market. Which means that some of the giant Pakistani stock may unable to attract investors anymore.

 

IMF package

Currently, Pakistan is facing a dollar shortage which resulted in asking IMF package. The prices that nation would pay against this package are free-floating exchange rate, raise at gas, electricity and petrol prices, and cut down in government expenditure. This also results in less job availability, layoffs, and some businesses may also hold back their investments. This whole situation will eventually cause inflation and dilemma in economic growth.

Moreover, some analysts assume that the PTI’s decision of seeking IMF loan is so late. Because if the rate of the dollar goes up, it will sweep out all accumulated stock gains. That is why investors are pulling out now and may come back when the rate of rupee devalues. As the US economy is getting better, the foreign investors are finding it more profitable to invest there. That is why they are pulling out Pakistan’s emerging market.

Recently, Prime Minister Pakistan arranged a meeting where the participant was acknowledged about the challenges that the current economy is facing. He also appreciates the steps that officials took to stabilize the confidence of investors in Pakistan’s economy.

 

Naya Pakistan’s housing project

The official delegation of this meeting appreciated the government’s Naya Pakistan Housing Project. The delegation believes that this project would not only help in generating economic activities but also help in creating job opportunities. The participant including Finance Minister Asad Umar, Abdul Razzak Dawood the PM advisor and other economists presented a proposal to strengthen the local domestic industries which can give competition to the international products.

Moreover, they have also assured Prime Minister regarding the complete support of the business community which will help them to achieve the proposed reform agenda and overcome the current economic challenges.

Previously Mr. Prime Minister also met with Aqeel Karim Dhedhi where he discussed the current economic issues of Pakistan and what are those initiatives that may help in forming Pakistan as a better economic country.  However, the CEO of AKD Group, Aqeel Karim Dhedhi has high expectations from the current government, where he believes that Mr. Asad Umar and his team in order to cut out the increasing debts and increase the reserves with his effective policies.