Is Pakistan really reaping the fruits of economic progress?

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NORTHAMPTON: Recently, the managing director of the International Monetary Fund (IMF), Christine Lagarde, visited Pakistan and said that it was a ‘moment of opportunity’ as the country was undergoing an economic transformation that can potentially place it among the ranks of emerging market countries.

However, it is important to analyse whether there has been a positive change in the lives of the ordinary citizens of the country. Have they tasted the fruit of economic progress?

Pakistan’s economic landscape

Taking a look at the economic environment in the country, economic growth in Pakistan has increased in FY16 to 4.7% relative to 3.7% in FY13. Inflation has also witnessed a marked decline in FY16 recorded at 2.9% dropping from a high of 7.4% in FY13. This has largely been attributed to a global environment of low oil prices. The country has also strengthened its fiscal position with the overall budget deficit narrowing by 3.9% of the GDP.

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