According to various international organizations, key economic indicators of the country are improving, the consumer price index has dramatically come down, foreign exchange reserves are increasing and a growth rate of 5.5 percent has been achieved. Reports also indicate overall increase in the purchasing power of the citizens which is evident by 25 percent increase in sale of motorcycles, at least 20 percent increase in car sale and increase in the energy consumption by 20 percent during the last couple of years. On another note, a thriving construction industry has increased production and sale of cement, steel, aluminum, and other related goods. According to a recent survey conducted by a European organization, disposable income has doubled in in Pakistan in six years and spending by local consumer has risen to 83 percent as compared to 49 percent in other countries in the region. The Pakistan stock exchange has emerged as the best performer in Asia, showing 52 percent rise in the volume of trade and is also performing better than Indian and Chinese markets. International financial experts hope the Pakistani stocks would soon be reclassified as the investor friendly emerging market basket whereas six firms are likely be added to the FTSE’s Global Equity Asia Pacific index.
According a report by the State Bank of Pakistan, various national banks have earned profit according to their basic capital and deposits. At least $20 billion annual remittances sent home by Pakistani diaspora last year has increased the profit margin of the banks up to 10 percent. Experts believe Pakistan has enough financial resources to go without the International Monetary Fund. The condition of foreign exchange reserves is stable and the government has raised around $1.7 billion from the sale of national assets. However, weaker exports and higher imports are an area of concern which has created balance of payment problem. The government is under pressure to privatize the Pakistan Steel Mills and the state flag carrier Pakistan International Airlines which are burden on the national economy. As a matter of fact, the government is unable to sell public sector organizations due to various reasons. The matter of privatization has already been politicized and absence of genuine buyers is another hindrance in the way of sale. However, sale procedure should be fair and transparent and the national assets should not be sold at throwaway prices. There is a need to change the whole look of the economy by introducing laws and procedure matching the fast changing circumstances.
