KARACHI: There is dire need to think why Pakistan's economy is not doing well and understand a wide range of explanation for present imbroglio, which are micro and socioeconomic concerns, said Ateeq Ur Rehman (Economic & Financial Analyst).
He said that Finance Minister Shaukat Tarin reportedly stated that 6 to 7 percent GDP growth was critical to deal with the unemployment as well as other economic challenges.
Further our imports are still showing rising trend due to additional import of cotton, raw material, wheat, sugar fertilizer and machinery adding an extra US 6 to 7 billion dollars in import bills, beside other importable items. Pakistani exports only achieved $25 billion mark in 2013, after that exports never reached that high level.
We need to export $50 billion, at least in this fiscal year, which looks impossible as we are not improving our potentials and running cost.
IMF projects Pakistan's GDP growth rate at 1.5 percent for 2021 against negative 0.4 percent in 2020. It also projected rise in unemployment from 4.5 percent in 2020 to 5 percent in 2021.
Ateeq added that presently Pakistan's external debt is nearly $115 billion which is 90 percent of GDP. This is pathetic every Pakistani is under debt of Rs 180,000. FBR tax collection targets were Rs 4963 billion for 2021 whereas for 2022 is Rs 6235 billion, which is 26 percent extra and is very difficult for taxpayers under such economic disruptions and Covid-19 situation to meet with this, Ateeq said.
Copyright Business Recorder, 2021
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