Prime Minister’s China visit:
Negative assumptions about the visit of Prime Minister Imran Khan to China are not correct. The landmark projects under China Pakistan Economic Corridor (CPEC) are in great interest if China itself. Why China loose this opportunity under these long term projects? Therefore, the assumptions that China will not support Pakistan are totally wrong. Pakistan has not asked China for financial help but sought a loan package. If an amount of $3 billion instead of $6 billion granted by China then Pakistan will come out of its financial problems.
Balance of Payment Crisis:
The country has almost overcome the energy related issues. The cement industry has expanded. Now it is time to focus on infrastructure. The government should outline its strategy. This will help resolving balance of payment issue.
Imposing regulatory duty to help reducing current account deficit:
Other than CPEC loan the rescheduling of external loans will ease the repayment pressure. In past couple of years the country took foreign loans amount $10 billion in each year. In the current fiscal year the repayment reaches $9 billion. In case the country able to get $3 billion surplus loan then current account deficit will be reduced. On the other hand the government enhanced regulatory duty on various luxury and non-essential items. This measure yielded positive results.
Import bill likely come down to $53 billion
The critics have presented untrue picture regarding higher import bill. Last year the import bill reached to record $60 billion. But it is fact that machinery for power generation was major component for higher import bill. The reduction under this head will be visible this year and I hope the import bill will not be more than $53 billion during current fiscal year 2018/2019.
Pak Rupee and higher interest rates:
The industrial activities are stagnant due to significant decline in value of Pak Rupee during past one year, which resulted in inflationary pressure. Further the higher interest rates are also impacted the economic activities. However, these will be temporary.
Livestock and rice exports:
The promotion of trade between Pakistan and China through currency swap agreement will help Pakistan economy. China will have benefit from many livestock products of Pakistan. Besides China other countries including Russian, Iran and UAE are big markets where Pakistani livestock can make their share. If Pakistan focus on these countries we can easily fetch $2 billion through export of livestock products. In the past due attention was not given to rice export. Resolving issues in export of this commodity we can improve the export from $2.2 billion to $4 billion.
The government seriously noticed the reaction of stock market on China visit. The government has agreed to resolve issues of the stock market. The improvement of local industry will help improved activities in the stock market.