Glimmers of hope emerging for Pakistan’s economic recovery: Prof Cheng

China Economic Net

Beijing: Pakistan has been severely hit by a double whammy of the COVID-19 pandemic and the locust outbreak this year. Now it seems that the government and people of Pakistan, with wisdom and courage, are finally overcoming the natural disasters. Glimmers of hope are emerging for the economic recovery now, Cheng Xizhong, visiting professor at Southwest University of Political Science and Law said on Thursday.

Moody’s, an international rating agency, confirmed Pakistan’s credit rating at B3 with a stable outlook and observed that Pakistan’s economy is improving on August 8, he wrote in an article published by China Economic Net (CEN).

On August 11, Pakistan’s Federal Minister for Information and Broadcasting Shibli Faraz said at a press conference that the worst period of Pakistan’s economy has passed and the good days are coming.

Due to the sagacious policies of the Pakistani government, the current account deficit has been brought down from ＄20 billion to ＄3 billion. Foreign exchange reserves of the State Bank of Pakistan have risen to ＄12.5 billion; exports are improving; foreign remittances are increasing and the stock market is seeing a boost. Despite an adverse impact of COVID-19 and locusts, Pakistan’s economic wheel has started rolling and all indicators are showing an upward trend.

Recently, the COVID-19 pandemic in Pakistan has been significantly curbed, which has created conditions for economic recovery. This is thanks to the strategy of “smart lockdown” launched by Prime Minister Imran Khan and a series of Standard Operation Procedures (SOPs) for pandemic prevention and control formulated by relevant government departments.

Pakistan is a friendly neighbor of China. I read Pakistan’s news online every day, paying special attention to the economic situation of the country and always hoping that the country’s economy would embark on the track of fast development.

Not long ago, when the federal government of Pakistan set the revenue target of Rs. 4.963 trillion for the fiscal year 2020-2021, I had some concerns about whether this target could be achieved. Now it seems that as long as Pakistan continues to carry out precise measures, COVID-19 will be basically under effective control and Pakistan’s economy will be on the way of full recovery by the end of September.

It is reported that the production of Interloop socks has got back to 100%, and new orders have come from the European Union and the United States. I reckon this as a piece of very important good news.

I have two reasons for this. First, the textile industry is the most important pillar industry and the largest export-oriented industry in Pakistan, accounting for more than 60% of Pakistan’s total exports. Second, Interloop is a large listed company that manufactures products for well-known brands such as Adidas and Nike. I think the recovery of production of Interloop and textile industry will play a significant leading role in the recovery of Pakistan’s economy as a whole.

This proves that Pakistan’s economy is on the road of full recovery, and exports are expected to gradually return to normal, which is conducive to accumulations of foreign currency reserves and improvement of Pakistan’s financial situation.