The federal government has made it clear that whatever it is doing is in line with the economic targets it is pursuing in the current term.
Prime Minister Shehbaz Sharif expressed this during a meeting of the provincial cabinet of Balochistan. The premier explicitly stated that his administration wanted to steer the country out of crisis, and wanted to put it on the path of progress.
He also disclosed details of various projects across the country, including the initiative to shift more than one million tube wells to solar panels, which would facilitate farmers in terms of irrigation.
He also spoke about the initiatives taken by the government regarding Balochistan and expressed optimism about the crucial role the youth of the province will play in its uplift.
Economic Crisis
Ever since the incumbent government came into power, the government has been trying to resolve the country’s economic woes. The economic crisis Pakistan currently finds itself embroiled in is not one that happened overnight, rather it took the country decades to get where it is right now.
However, the crisis was further exacerbated when a political crisis began in the aftermath of the ouster of the Pakistan Tehreek-e-Insaf (PTI). While the Pakistan Democratic Movement (PDM) claimed to be working for the betterment of the people, inflation surged to record-high levels, and poverty increased as well.
Ever since the formation of the incumbent coalition government, the authorities have time and time again stated their desire to provide the country with better economic conditions.
Exchange Rate
The exchange rate has generally stayed consistent since last year. Previously, the exchange rate worsened in Pakistan prior to the elections, and during times of political instability. This was partly due to the smuggling of United States Dollars from Pakistan into Afghanistan, and partly due to the dwindling economic situation.
Pakistan barely avoided a default, as it got a last-minute bailout from the International Monetary Fund (IMF), which put forth tough conditions at a time when the public was already under the immense burden of economic policies dictated by international agencies.
Stock Market
Another important indicator of the economic condition is the trade volume at the country’s stock exchange. The KSE-100 index closed at 80,737.71 points on Monday, which was surprising, considering how the fire broke out at the building and suspended trading for a while.
The stock market had been performing poorly until last year when the index started doing well courtesy of several policies that had been critical in uplifting the investors’ sentiments.
Budget 2024
Despite the government’s efforts, the budget for the current fiscal year falls short on many counts. Firstly, it barely provides any relief to the existing taxpayers, rather the increased taxes have drawn criticism from the masses and has given fire to false rumours on the internet.
Similarly, there are allegations that the budget has been explicitly prepared on the directions of the IMF, which, the people believe, is not acting in the best interests of the country, but is only focused on securing repayment capacity before dispatching any financial assistance.