Economic downfall

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Saqib Ishaq
Pakistan’s economy is facing serious challenges on the fiscal front. The main challenges are insufficient revenue generation, high fiscal deficit exports, insignificant growth and fear of remittances slowing down. The PTI government is trying to overcome the fiscal challenge in several ways but other relevant and concerned departments are not assisting the government appropriately. Even some of the government’s members are not fulfilling their duties properly.The scope for encouraging imports of industrial raw material – in order to lift the country’s large-scale manufacturing sector out of recession – is low.. This, in turn, means industrial growth may remain stalled. There is also no room for the rupee to
strengthen enough in such a short term to create demand for the import of consumer goods. Consumption of domestically produced products is also dwindling because of falling income levels and high inflation. Inflation is stubbornly high, but constantly rising. Agriculture is not growing at the desired pace and industries are producing less. The PTI government is hoping for a revival of the export sector. But failure to accelerate revenue collection and boost export earnings is pushing the government to continue to borrow from domestic as well as external resources. The resultant increase in the debt stock is pushing up the cost of both domestic and external debt servicing.

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