According to a World Bank report, Pakistan will continue to travel on a modest recovery path and is expected to raise its gross domestic product by 4.8 percent in 2017. The government has tried to restore economic stability but much of the credit goes to low oil prices in the international market and strong remittances sent by Pakistani diaspora from all over the world. It should be noted that the government policies act as the driving force to stimulate trade and business activities, but the bank sees low level of private and public investment in the country. A dilemma in the developing countries is that the governments do not lower their non-development expenditures and put all the burden of their lavish spending on taxpayers. This is exactly happening in the country as not only indirect taxes are increased on one pretext or the other time, the ratio of direct taxes is also increased several times in a year. A World Bank official has appreciated the government performance for making great progress in restoring macroeconomic stability, but there is a long way to go to put Pakistan on the growth track.
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The report issued earlier this month sets out recent economic developments as well as identifies challenges faced by the country in near future. It is hoped that the economic growth will modestly pushed forward up to 2019 and the government will improve its performance by expanding electricity supply, introducing key reforms in tax system and strengthening the overall business environment to attract local and foreign investment. At the moment, the main thrust of the government should be to devise business friendly policies not only to encourage local investors, but also foreign multinationals to set up their businesses in the country. The policymakers must ask a question to themselves as to why Pakistanis tend to invest in offshore companies. Had there been conducive business environment in the country, there would have not any capital flight. Pakistan must encourage private sector to set up its own Manhattan district or Dubai like real estate sector to attract investment from all over the world with a wise and efficient banking system.
Pakistan has all the sentiments which can make it an attractive destination for the investors from all over the world. But there is a need to exploit opportunities and this would not happen unless the government breaks its traditional barriers and bureaucratic red tape filing system. Pakistan’s northern and southern parts offer tremendous opportunities to the world and it is the government which has to work out plans and policies to achieve the desired goals.
