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Pakistan an Emerging Economy

Pakistan has been suffering worst kind of terrorism and extremism since it alliance with US in the war on terror. The country got fruits of terrorism from US invasion and its policy in the region.  In the war against terrorism Pakistan has suffered loss of fifty thousand precious lives including the loss of almost $80 billion in terms of economy.

Government of Pakistan started massive operations against all anti state element last year instead of small ongoing operations. In the one year of large scale operations most of the terrorist were killed or caught by security forces. In the effect of progressive military operations, incidents of terrorism sharply decreased which also has been admitted by a recent US state department report. In this year Pakistani people enjoyed first military parade after its closure of several years. It was observed that military parade with its full roar was a clear sign of victory against war on terror.

In the outcome of successful operations against terrorists, country got and getting its economical boom again. Surprisingly, the economical indicators of Pakistan sharply increased and increasing and it could be observed in all national and international reports.

Interestingly, Pakistan got rank of third in calendar year 2014 amongst the top ten best performing markets in the world.  In 2014, the KSE-100 Index gained 6,870 points from 25,261

to 32,131 level, generating a handsome return of 27 percent (31 percent return in US$ terms) for the investors.

Karachi stock exchange (KSE) showed a growth of 13.75% whereas, India’s Sensex increased only by 6.3 percent, US S&P by 6.4 percent and UK FTSE by 3.2 percent during July-April 2014-15. Also the international monetary body, Moody’s upgrades Pakistan’s bond ratings to B3 with a stable outlook.

The stability and rapidly growing economy attracted national and foreign investors. Foreign private investment has reached to $1666.2 million during July-April 2015 as compared to $1050.3 million showing 58.6 percent higher as compared to last year.

The remittances sending by overseas Pakistanis have touched its new peak with the increase of 15.25 % .The figure of remittances crossed first time $15 billion this year.

During July-March of 2014-15, fiscal deficit as percent of GDP was contained at 3.8 percent against 3.9 percent in the same period of fiscal year 2013-14. If we see on other countries in same period, India was standing at 4.1% and UK was at 5.7% fiscal deficit in 2014.

The total revenue of Pakistan increased by 8.3 percent during July-March, 2014-15 and stood at Rs. 2,682.6 billion as compared to Rs.2,477.4 billion in the same period of 2013-14. Revenue collection is still not upto the required level but sign of increasing is satisfactory but it needs more work.

The GDP growth accelerates to 4.24 percent in 2014-15 against the growth of 4.03 percent recorded in the same period last year. The inflation rate measured by the changes in CPI, averaged at 4.8 percent during July-April, 2014-15 against 8.7 percent in the comparable period last year, which is lowest since 2003. The inflation rate of Pakistan is comparatively lower than other region’s countries as India and Bangladesh, 5% and 6.8% respectively.

Per capita income in dollar terms recorded a significant growth of 9.25 percent in 2014-15 as compared to 3.83 percent last year. The per capita income in dollar terms has reached to $1,512 in 2014-15.

In the top of that China and Pakistan have made agreements to establish China Pakistan Economic Corridor between the two countries with the investment of US$ 46 billion. According to the agreements China will also help Pakistan in building its infrastructure especially in energy sector. The corridor will connect China to Arabian Sea through Gawadar port. In further extension this route will lead to connect Central Asian states through Afghanistan with Gawadar port. After the completion of this project Pakistan’s International trade would be dramatically increased and through International seaport (Gawadar) government could get huge money in terms of revenue.

Due to the poor management of previous governments Pakistan has been facing worst kind of energy shortfall from last many years. This issue badly effect overall growth of the country. Current government has put the issue on high ground and with the help of China and other countries a number of massive energy project are under construction. Hopefully in next three years the shortfall could be defeated. It is interesting that despite the worst kind of energy shortfall, the industries are still showing growth and its obvious that once this crucial shortfall of  energy solve the overall growth rate of the country would be increased with more high-speed.

The growth rate of Pakistan is still low but it is increasing day by day. It is rarely seen that a country which was badly affected by terrorism and facing severe problems but after all these issues it shows growth and in such level like Pakistan showing nowadays.

The gift of war on terror, extremism and terrorism badly destructed all walks of life in Pakistan. The country is facing huge problems like poverty, low literacy level, weak justice system etc. But if we go through last one year development we find rapid positive changes and improvements in all sectors of the country which is very much hopeful.

Pakistan has been in the state of war since 9/11 and now the war is going to end with sign of great victory.

(Majid Khan is a Journalist, Lecturer and PhD scholar of media in Australia)
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