The Covid-19 pandemic has blighted economic growth across the world. Similarly, the situation in Pakistan is not so different. Currently, the state of the economy in the country is in deep peril. Economic growth has not only dilapidated but has also been severely curtailed by a plethora of factors such as big shifts in the economic markets, massive decrease in exports, fiscal and current account deficits, and unscrupulous decisions made by the current economic team.
Earlier this year, Prime Minister Imran Khan continuously made claims that the government had managed to stabilise the economy and had declared the ongoing year as a year of growth and development. All such claims by the PM and his team seem ludicrous. A closer look at the economy reveals a sudden drop in the exports of the country. Recently, a report issued by the State Bank of Pakistan has shown a surplus of $13 million in the current account as compared to the deficits of earlier months. To give an illustration, this increase in the current account is temporary and made possible due to import compression.
As per indications, the country’s economy is in dire straits. Furthermore, the indicators on which the economy is gauged reveal that thousands of non-essential products had been imported before this lockdown. To preempt more losses, the government may need to take some plausible steps in order to lift the battered economy and to resurge economic activities in the country.
Abdul Bari
Karachi
Published in The Express Tribune, July 15th, 2020.
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