Report by Engineering Post
The Federal Government was focusing on maintaining a stable economy by prioritizing exports from the country and inflow of investment in different sectors from foreign countries in one or the other form.
According to the information available, through continued policy and persistently pursuing reform implementation, growth was anticipated to reach its medium-term potential of around 5.5 percent by FY 2027 gradually.
A critical part of this policy was to increase openness in trade and investment flowers to ensure industries have access to required raw materials.
The government has taken appropriate measures to control speculation in the foreign exchange market in order to reduce uncertainty in the external sector. It was notable to mention here that by following suitable policy measures, improved agricultural output, and administrative actions, inflation was reported to have decreased to 11.8 percent in May 2024 from its peak of 38.0 percent in May 2023.
The experts on being contacted said that the government was fully aware of macroeconomic trends and adequately committed to ensuring sustainable economic growth in the medium term. To achieve this, sector-specific measures in agriculture, industries, and services, along with fiscal consolidation, energy sector reforms, state-owned enterprises, and governance reforms, were being implemented for moving the economy towards higher and sustainable growth. It was also worth mentioning here that both federal and provincial governments were working together for achieving medium-term targets with price stability, demonstrating a dedication to sustainable economic growth.
The experts have opined that the world economy was bouncing back from the challenges brought on by the pandemic and the Russia-Ukraine conflict. Key trading partners were experiencing economic growth and global chain disruptions were also gradually being diminished . Consequently, the industrial sector was expected to witness improvements in FY2025.
Thus, improvement in the commodity-producing sector was also likely to be translated into the services sector with its backward and forward linkages. Furthermore, additionally improved business confidence with a stable exchange rate was also expected to enhance domestic production, reducing supply chain and thus helping in maintaining price stability.
The inflation was also projected to normalize due to high base effect, improvements in the agricultural sector and favorable global conditions, the experts opined concluding.
