Pakistan, the second largest country in South Asia in terms of population, has emerged from the hectic game of politics and is now on an economic journey. Terrorism, political instability and global politics in the past have played a key role in weakening the country’s economic base. After winning the war on terror, Pakistan is now on a different path. A path that leads to peace, love and economic development, rather than the dirty games of world politics. Pakistan’s political and military leadership is well aware that in order to ensure the country’s survival and security, the country’s economic foundations must be strengthened at all costs. Let’s take a look at what progress Pakistan is making in this regard.
Pakistan’s economic system is complex, but it has made great strides in recent years. To give place to economic stability in the country, many reforms have been made. The most important task is to set the dollar at a market-based rate so as to limit the role of the SBP and determine the actual value of the dollar. This was also necessary to make better use of the SBP’s reserves as in the past the SBP used to throw money from its valuable reserves into the market like water to keep the dollar rate low.
The government’s efforts to improve the tax system and increase tax collection were successful and Pakistan collected more taxes than its target in the fiscal year 2020-21. For the financial year 2021-22, the government has decided to register new POSs and crack down on tax evasion, which will help increase the tax net.
In addition, a number of other measures were taken, including easing the stock market and company registration, which paved the way for economic stability and ease of doing business.
In today’s world, if an economy is successful, it is largely because of the idea of an export-based economy! The government has taken exemplary steps to promote trade. Due to which the volume of Pakistan’s exports was the highest in the history of the country in the financial year 2020-21. That’s more than $ 25 billion.
Due to the supply of electricity and gas at reasonable prices and new trade agreements with various countries and to give the industry an environment of international competition, where the industry started booming, the closed textile industry started operating at full capacity. This has helped reduce unemployment in the country due to the corona virus and helped the government to stabilize its reserves and reduce its trade deficit.
In this regard, the development in the information technology industry has been remarkable, which has paved the way for the government to develop the IT sector to increase the country’s trade many times faster.
Pakistan seeks peace and stability in South Asia and is working to increase trade. India, a major trading market, is depriving the people of the region of the development that Pakistan is dreaming of by taking negative steps in this regard.
Pakistan believes in regional connectivity and is taking several steps in this regard. Notable among these is the Pakistan-China Economic Corridor. The opening of the freight train via Iran to Turkey is also an important step in this direction. This not only provides an opportunity for China to bring its goods to the markets of Turkey and Iran, but also an opportunity for Pakistan to strengthen its trade relations with these countries and increase trade.
Pakistan wants peace in Afghanistan. Access to Central Asian trade markets through Afghanistan is a long-standing desire of Pakistan. In this regard, peace in Afghanistan is essential. Pakistan allows these countries to use its ports which facilitates trade to these countries as they are landlocked countries. Pakistan wants to take advantage of the natural resources of the Central Asian states, and increase trade with these countries. If the Afghanistan administration works seriously in this regard, it will be a great opportunity not only for Afghanistan but for the entire region to embark on a journey of development together.
Special Economic Zones:
For industrialization, Pakistan is paving the way for investment in special economic zones. In this regard, new economic zones are being set up in strategic locations.
Allama Iqbal Industrial City is the largest economic zone with an area of 3217 acres, located on M3 in Faisalabad. Being in Faisalabad, which is a notable city for the textile industry in Pakistan, it will create around 200,000 jobs and generate billions of rupees. A large number of companies are interested in investing here, especially international companies are showing great interest.
The Rashakai Special Economic Zone in Khyber Pakhtunkhwa, near the M1 Motorway, will be developed in three phases. Being located in the north, it also has the advantage of being used for trade with Central Asia and Afghanistan. Textile, building material, automobile and electronics are the proposed industries along with many other industries.
The Dhabeji Special Economic Zone and the Boston Industrial Zone are other notable economic zones. Pakistan welcomes global investment in these economic zones, especially from the Middle East, China, Japan, Korea and Malaysia.
Pakistan is now an ambassador of peace instead of war. Pakistan seeks trade, stability, and a balanced relationship with each and every country of world. The world now needs to look at Pakistan from a new perspective as Pakistan has shifted its journey from geopolitics to geo-economics. Because trade eliminates poverty in the world and improves people’s lives!