Islamabad [Pakistan], June 13 (TN): Pakistan’s foreign direct investment (FDI) during the current financial year has shrunk to USD 17 billion, Pakistan vernacular media Daily Dunya reported.
Daily Dunya is an Urdu daily newspaper from Pakistan.
The FDI has been declined by 23 per cent as compared to the previous year.
Meanwhile, the ratio of investment to GDP was 13:6. The percentage remained the lowest among the regional countries. These figures should be eye-openers for the Pakistan government. But the government has been acquitted of the economic problems by blaming the ongoing political instability in the country and last year’s floods.
As per Daily Dunya, due to the government’s negligence, not only the investment has decreased but also the industrial sector of the country has been badly affected. Exports were also directly affected due to a decline in industrial production.
The factors leading to the collapse of the country’s economy include a decrease in investment, industrial production, and exports. Investors are reluctant to invest in Pakistan due to the ongoing political instability in the country coupled with the absence of coherent economic policies.
The government must pave the way for political stability in the country as well as chart out the course for the economy in order to find a lasting solution to the problems the country is facing including unemployment, inflation and low investment.
Pakistan is reeling from one of its worst economic and political crises which has impacted the masses. This comes despite constant efforts of the coalition government to tackle the same, Geo News reported.
Geo News is a Pakistani news channel.
Pakistan’s Ministry of Finance has warned of challenges originating from uncertain external and domestic economic environments, including higher inflation and external debt repayments, due to lesser foreign exchange inflows, according to Geo News.
Amidst political turmoil and a worsening economic crisis in Pakistan, Asif Ali Zardari, co-chairperson of the Pakistan People’s Party (PPP) and a key ally in the ruling coalition, reiterated his plea for a “charter of the economy.”
Zardari emphasized the need for collective efforts to enhance the country’s economic situation. according to Dawn.Before the last year’s budget and not long after its ascension to power following the ouster of former Prime Minister Imran Khan through a no-confidence vote in April, the incumbent dispensation in Islamabad, particularly Prime Minister Shehbaz Sharif, floated the idea of an economic charter. The concept revolves around all stakeholders working together to provide a framework for economic growth, Dawn reported.
Pakistan has been caught up for months in an acute balance of payments crisis, with its central bank’s foreign exchange reserves dipping to as low as to cover hardly a month of controlled imports. (TN)