In its latest report on the market shocks in Asia-Pacific region due to Britain’s exit from the European Union, the Asian Development Bank has highlighted three main issues confronting the Pakistani economy. The report says that stability will prevail during 2016-17 in the developing economies of the Asia and Pacific region but Pakistan will have to improve energy supply, attract higher investment in infrastructural projects and improve security environment to push economic growth in the next two years. While slightly lowering the growth projection to 5.6 percent from earlier forecast of 5.7 percent in the region, the report also calls for strengthening of the growth prospects of the developing economies to offset the impacts of Britain’s decision to leave the European Union. The British referendum has affected bourse and currency in the Asian markets, but prudent policies are required to spur industrial growth and ensure that the regional economies are ready to absorb external shocks.
Pakistan is facing chronic and acute energy crisis and the present government could not picked up the energy supply despite being three years in the office. The load shedding and load management still haunt the industrial sector across the country, especially Punjab, and the domestic consumers are still forced to live in dark and depression. The report sees steady growth in South Asian region and China is also heading towards achieving its growth projection. Growth forecasts remain unchanged in various countries of the South-East Asian countries, including Hong Kong and Korea. It is hoped that the economies in the region will continue to take stimulus measures to stabilize the fiscal and monetary sector. According to experts, Pakistan has already achieved fiscal stability despite growing volume of loans and increasing trade deficit. However, the exports of the country are falling and stimulation of the industrial growth is necessary which is not possible without producing cheap electricity in the country.
Pakistan has a few options to generate hydel power due to dwindling water flow in its rivers some of which are virtually dried. The revival of the Kalabagh Dam project, which had been shut down under political pressure, can be the last hope to improve energy supply in the country. The government should have to investigate how India is managing to inject money in the political parties which are creating hindrances in the way of this project of national importance. The army has already started operations against terrorists and anti-social elements across the country. Many notorious terrorists have been killed and peace has been restored in Karachi and other parts of the country. But many more steps are required to ensure stability and peace in the country to attract local and foreign investment.
