BEIJING, Jan 27 (APP): The positive signs in Pakistan’s economy are seen in the first quarter of the ongoing fiscal year 2020-2021, with remittances growing 26.5%, FDI 9.1%, tax collection 4.5%, and the primary balance turning into a surplus worth Rs.258 billion.
A significant increase is also witnessed in sale of cars, motorbikes and tractors from July to October 2020. This shows that Pakistan’s economy is entering the phase of comprehensive recover, Cheng Xizhong, visiting professor at Southwest University of Political Science and Law said in his article published by China Economic Net (CEN) on Wednesday.
In his point of view, there are mainly three reasons: First, the development of the China-Pakistan Economic Corridor (CPEC) has been continuously promoted.
A large number of power and transportation infrastructure projects have been completed and put into operation, and the construction of special economic zones (SEZs) has been launched, which has created favourable conditions for Pakistan’s economic recovery and take-off, and also enhanced the confidence of domestic and foreign investors. The success of the CPEC construction shows that Pakistan is the most potential and profitable investment destination
Second, Pakistani Government rolls out a series of new “prudent and timely policies” that are conducive to promoting economic development. For example, the tax reductions policies have greatly improved the business and economic development environment.
The large-scale manufacturing (LSM) has registered a 4.8% growth, and the cement sector has expanded 20%. Besides, the Government has followed a “liberal foreign investment regime” and introduced measures to promote Ease of Doing Business (EoDB) in the country, leading to an improvement in Pakistan’s ranking from 147 in 2018 to 108 in 2020 in the World Bank’s (WB) index. This is an “unprecedented improvement”, said the WB report.
