Pakistan: A Land Brimming with Opportunities

1
429

Pakistan is strategically located at the crossroads of Asia, surrounded by several important countries. Pakistan may develop into a significant economic, energy, and transportation corridor because of its strategic position. Most significantly, Pakistan serves as a gateway to nations in the far east, the Gulf States, and Central Asian states that are wealthy in oil. Pakistan is a land of limitless potential due to its unique characteristic and advantageous position.

Pakistan is one of the world’s resource-rich nations, with significant amounts of coal, gas, diamonds, copper, salt, minerals, and gold.

Pakistan’s economy is the 40th biggest in terms of nominal GDP and the 23rd largest in terms of purchasing power parity. Within the top 10, Pakistan is ranked as the eighth receiver of remittances.  Agriculture, industry, and services make up the bulk of Pakistan’s economy and account for 19 percent, 20 percent, and 61 percent of GDP, respectively. Pakistan is rated fourth for cotton production, fifth for sugarcane production, and eighth and tenth for wheat and rice production, respectively. Pakistan is one of the world’s resource-rich nations, with significant amounts of coal, gas, diamonds, copper, salt, minerals, and gold.

Pakistan has consistently shown to be the most resilient country waiting for its long-overdue ascent. It meets all requirements to be a significant economic force in the area and Asia. It has enormous economic potential.

Pakistan is the world’s fifth-most populous country, with a population of over 220 million people. Of its 65.5 million workers, 10.8 million are employed overseas. Pakistan has the best demographic prospects for growth now that an increasing number of young people are becoming adults. Achieving sustained economic development will be helped by Pakistan’s growing youth bulge, which has various skills. To fully use the potential of the young, the Pakistani government is doing all in its power to equip them with the necessary training, chances for skill development, and employment. Pakistan’s consumer market is expanding quickly and has surpassed 161 million people.

Due to the global financial and economic collapse, mismatched economic policies, the fight against terrorism, energy shortages, natural disasters, and poor governance, Pakistan’s economy has shown remarkable resilience in reaction to shocks on both the internal and foreign fronts. Over the years, all these difficulties significantly hampered Pakistan’s economic progress, which stayed below its potential.

In order to stabilize the balance of payments and boost market confidence, the current administration decided to join the IMF’s Extended Fund Facility. Additionally, extra financial assistance from other bilateral and development partners will help stabilize and transition to rapid and inclusive growth. The current administration is steadfastly devoted to implementing extensive changes across the board. The goal is to make Pakistan a nation of opportunity.

The high-performing agriculture sector is central to the current government’s growth and poverty alleviation strategy. Through the inclusive expansion of the rural economy’s agricultural and non-farming components, it plays a significant role in reducing poverty and socioeconomic uplift.

Real estate makes up a significant portion of the economy, and the government has taken steps to enhance it. The preliminary GDP growth rate for FY2019 stayed at 3.29 percent, mostly due to agricultural growth of 0.85 percent, which was impacted by significant crops’ negative growth of 6.6%. The agricultural industry is Pakistan’s economic backbone, which contributes around 19 percent to the GDP, employs 38.5 percent of the labor force, and continues to be a significant supplier of raw materials for several value-added industries.

The high-performing agriculture sector is central to the current government’s growth and poverty alleviation strategy. Through the inclusive expansion of the rural economy’s agricultural and non-farming components, it plays a significant role in reducing poverty and socioeconomic uplift.

A “National Agriculture Emergency Program” with a budget of Rs. 280 billion has been launched to enhance the agriculture sector and comply with the economy’s needs to achieve overall GDP growth. To maintain a smooth supply and availability in the food supply chain, the program would be implemented with the cooperation of all provinces. It would focus on increasing agricultural output, fisheries and livestock development, and water conservation.

The government is offering incentives to the industrial sector via an export development package, gas and energy subsidies, and long-term trade financing to increase employment in this area. Because of anticipated expansion in the agricultural sector and government efforts in the construction, small and medium-sized enterprise (SMEs), tourist, and car sectors, the large-scale manufacturing sector, which reported negative growth in the previous year, is set to recover.

Because of the goods transport services connected to agriculture and wholesale commerce, the expansion of the LSM and agricultural sectors will likely have a positive effect on the services sector. Government incentives for export-oriented businesses and the recovery of agro-based industries will raise worker productivity, supporting the revival of LSM.

Other efforts and accomplishments include the Pakistani government’s active foreign investment promotion strategy and the many economic liberalization steps it has made to make the nation more appealing. For creating industrial units in particular niche industries, such as energy, ports, motorways, electronics, and software, Pakistan provides various tax benefits.

The administration is leaning toward creating Special Economic Zones to attract FDI (SEZs). In this respect, the CPEC prioritizes the Rashakai Economic Zone in Nowshera, the Allama Iqbal Industrial City in Faisalabad, the Dhabejji Industrial Zone in Thatta, the ICT Model Industrial Zone in Islamabad, and the Bostan Industrial Zone in Balochistan. However, other options include Port Qasim, Moqpondass SEZ, Gilgit-Baltistan, Mirpur SEZ, Azad Jammu & Kashmir, and Momand Marbel City. In these zones, the government will promote a business-friendly atmosphere, increasing exports and generating jobs.

The increase of 11 points in Pakistan’s ease of doing business index would undoubtedly draw in global companies and increase FDI. The Board of Investment will continue to promote a favorable business climate with the assistance of key stakeholders and will make further efforts to improve the ranks on the Global Competitiveness Index and the ease of doing business.

The government is concentrating on enhancing the investment environment to encourage foreign investment in the nation. The government has launched a number of international efforts to achieve this. Russia and Pakistan have reached a contract for an offshore gas pipeline. Saudi Arabia has also shown interest in investing in a new oil refinery in Pakistan’s expanding deep-sea port of Gawadar, which is expected to boost FDI there.

The government is concentrating on enhancing the investment environment to encourage foreign investment in the nation. The government has launched a number of international efforts to achieve this.

Similarly, the government promises to offer the necessary infrastructural facilities for traveling visitors while realizing the potential of the tourism business. To encourage tourism in Pakistan, it is appropriate to provide a visa on arrival.

Pakistan has consistently shown to be the most resilient country waiting for its long-overdue ascent. It meets all requirements to be a significant economic force in the area and Asia. It has enormous economic potential. A World Bank report claims that with strong economic policies, Pakistan’s GDP might reach US$ 2 trillion by 2047. The government has adopted a comprehensive package of economic and structural reforms in order to lay the groundwork for sustainable development and transform Pakistan into an equitable nation with limitless opportunities. The government is well aware of the challenges that Pakistan is currently facing.

Print Friendly, PDF & Email

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here