Pakistan’s Economy And Investor’s Future
Read Time: 2 mins
This article is about Pakistan’s economy and its effects on investors. We do invest money to earn a profit and many of our benefits rely on our investments. When an investor invests in real estate, things begin to move around. It impacts the lives of thousands of people associated with this market. The current situation of the market is not satisfactory. Therefore, thousands of people in this segment is suffering for the last couple of years.
It all started in the July of 2016 when Finance Minister then Mr. Ishaq Dar implemented such rules and regulations that have dented the real estate industry all across Pakistan badly. Since then, the market still hasn’t recuperated. This downfall caused a hard time for all the people who rely on real estate activities to win their bread.
The real estate industry isn’t the only one suffering the country at the moment. There are a lot of other industries who are also suffering for their survival. Prominently, the textile industry. This industry has been dropped to more than half where it was standing previously. It means, during the tenure of General Pervaiz Musharraf, our textile exports were more than double to our today’s textile export. This downward trajectory of textile exports cost the country cut-off of thousands of jobs. The major damage to this industry was being done during the PPP tenure of 2008-2013.
Hence, all the industries of Pakistan suffered poorly and went down gradually during the last ten years. Our imports were kept increasing while our exports kept falling down. Therefore, we had to send millions of Dollars out of the country instead of receiving. So, the deficit of the current accounts increased gradually and is still increasing. It causes the monthly burden of around 2.5 billion USD on the foreign reserves.
The heavy external debts is another major concern at the moment. The schedule of paying back our loans are increasing as same as the debts are increasing. Foreign exchange has also fallen down. Remittances from Saudi Arab has been decreased by 1 billion. Remittances from UAE are stable but not increasing. The loans taken by the last government are development loans. But the last government had no plans to pay back those loans.
Right now, it seems like the newly elected government is serious about pulling the country out of this financial crises. People believe that the government is actually thinking in the right direction. The government is exploring every possible opportunity to cut-off the expenses so that they can avoid going to IMF once again. And if the government succeeds to dodge IMF this time, we will see a lot of positive vibes then. We believe things will begin to go up if the government successfully tackled IMF, our Rupee will start progressing.