Pakistan is the second largest economy in South Asia after India and has been achieving new successes despite border dispute Afghanistan, cross border firing on the line of control with India and growing tense relations with best friend of the past, Iran. The government is making all out efforts to achieve the fastest growth rate in the regional economies as China’s interest in the Pakistani economy is also growing and the size of its investment is increasing with deep economic and cultural cooperation. Both the countries are working to establish peace, fight terrorism together and resolve geographical issues through negotiations. Sobriety remained the basic component of the Chinese foreign policy toward Pakistan as well as India. The country has concentration more on the economy than regional issues and it has successfully kept a balanced approach in its relations with the countries of South Asia. On another note, India’s foreign policy is marred by ambiguity and contradictions and has border and water disputes with every country in the region. Once peace is restored, it will be beneficial for both the countries.
Finance Minister Ishaq Dar, who is the driving force behind the economy, is considering tax cuts and a package of relief for agricultural sector which has performed well during the outgoing fiscal year. In the multi-billion dollar federal budget for the fiscal year beginning in July, Dar has also proposed a plan to enforce a zero-rated sales tax regime to boost exporters of textiles and leather products. It is hoped that cut in taxes will encourage foreign investors to avail opportunities in surgical and sports goods manufacturing as well as in growing auto industry. The gross domestic product of the country has been projected to grow at a rate of 5.7 percent and the economy has crossed $300 billion mark. If the government achieves the target, it will be a great success for the nation. The government is planning to spend Rs 1.68 trillion on development of infrastructural projects, including the construction of buildings, roads, dams and ports. The government is also working on various projects to enhance power generation capacity, as the persistent load shedding is haunting the industry.
Unfortunately, Pakistan has shed points in world business confidence index and it is plunged to a six months low. However, it is hoped the Chinese investment in the proposed industrial zones and export processing zones will somewhat resolve the thorny issues confronting the economy.
