PAKISTAN FLEXING THE ECONOMIC MUSCLE
Keeping in view the recent macroeconomic trends, there is not less to say about optimistic development for the economic recovery after years’ long prevailing doomsday scenario. The Prime Minister Imran Khan’s heart was in the right place when he indicated a broad-based recovery in the days to come. The sign of this reversal can be observed in the recent reverberation in manufacturing as evinced by record cement sales, amplified demand for cars, motorbikes and white goods, resumption of the construction industry, etc.
No doubt, domestic consumption is the major driving force behind the scene. It is a healthy sign that the present development in consumption is not driven by imports. That is the reason, we have witnessed large-scale manufacturing improvement and the current account posts a surplus during the first quarter of the financial year. The current account deficit is a measurement of a country's trade where the value of the goods and services it imports exceeds the value of the products it exports. Last month, the Minister for Science and Technology Fawad Chaudhry said it is after 17 years that Pakistan has come out of the current account deficit. In a tweet he said, “This happened because our exports and remittances remained more than imports.” He said the government had also cut its expenditures. It is true that a country could only be taken forward on the path of economic self-reliance by reducing expenditures and enhancing revenue.