Pakistan’s international debt are likely to reach $110 billion in coming years, posing a big challenge for financial experts to create an equilibrium between debt-servicing and development plans. The dwindling flow of remittances into the country from expatriate Pakistanis and rising oil prices in the international market have already started showing their visible presence. However, there are some positive signs in the form of China Pakistan Economic Corridor, a vibrant construction industry, rising foreign direct investment and promising software industry besides traditional sectors of textile, garments and sports goods manufacturing with potentials to convert the country into a developed economy. The real estate sector has emerged as one of the best economic performer in the country and construction industry is its integral part, which is thriving all over the country from Gwadar to Lahore and Peshawar to Karachi. Dozens of industries are related to the construction sector, including cement, paints and ceramics. The more construction activities mean the related industries will have to do overtime to meet the growing demands. Despite some harsh steps by the government on one pretext or the other, the industry is making progress with leaps and bounds, creating big job market for the skilled and unskilled workforce.
The private sector is fully involved in the construction industry while the government has also launched various mega projects for the development of infrastructure. This has pushed the country towards economic growth and spurred industrial activities across the country. The Information Technology sector is the new addition to the country’s economy with current volume of $2.8 billion. However, the the Pakistani software industry is making inroad into $3.2 trillion global IT market and it is hoped only this sector can bring the country out of economic crisis. At least 1,500 software companies are already performing in the market and hundreds of startups are in the queue. Pakistan is building a first state-of-the-art multipurpose Information Technology Park in collaboration with South Korea and the park will cost over $1 billion. The CPEC has psychological effects on the world investors who are also taking interest in various sectors in Pakistan. However, the government will have to increase electricity generation which has been haunting the local industry for the last many years.
Apart from China, Turkey, Netherlands, the United States and many other nations are looking to invest in Pakistan. They debt are rising, but economic boom is also round the corner. It is hoped the government will not take any imprudent steps which could harm the economic gains.
