Economy

Pakistan: Key economic growth indicators showing sturdy performance

Writer Paras Malik

Posted on December 13, 2020

Key economic growth indicators from Pakistan are showing strong performance despite challenges posed by the second wave of COVID-19 and depressed economic conditions in many regions globally.

Pakistan’s economy is in a crucial process and heading towards recovery phase and it is only possible when the full potential of the key sectors is taken advantage of.

Now let’s take a look at the recent days and see what signs of improvement are being seen in different sectors in Pakistan.

The Government’s Decision to Boost the Economy Through Real Estate

Real estate is a pillar of any country’s economy, without it, it would not take long for the building to collapse.

According to the World Bank, about 60 to 70 percent of a country’s total wealth is held in its real estate assets. If this estimate is applied to Pakistan, it is worth between 300 billion to 400 billion.

Pakistan has set up a 13-member high power National Coordinating Committee for Housing and Construction which indicates that the government is serious about moving the wheel of the economy through the housing.

After lifting of lockdown imposed due to the first wave of coronavirus, construction industry was the first which was resumed. The federal government also announced construction packages and committed to building five million houses along with jobs associated with 42 real estate industries. A record number of cement sales have been recorded this year. It is safe to say that things are moving in the right direction.

Signs of Improvement in Tourism

While the signs of improvement are being talked about, the rise of the tourism industry is also important. In recent days, Pakistan has seen an increase of more than 70% in domestic tourism, mainly due to various measures taken by the government and especially the improved security situation.

According to a report, the number of foreigners coming to Pakistan on tourist visas in 2018 was 17,823, while according to the same report, the number in 2017 was 10,476.

This significant growth in the tourism industry has definitely made the minds of foreigners focus on buying or investing properties in Pakistan, especially in major urban centers like Lahore, Karachi, Islamabad, Faisalabad and driving the economic wheel there.

World Bank gives Pakistan Better Rating for Ease of Doing Business

Pakistan is on the right track by creating a conducive environment for business people. The World Bank has ranked Pakistan 108th in its Doing Business 2020 report.

This is an improvement of about 30 points as Pakistan was ranked 138th just a year ago. The report reflects the fact that Pakistan is gradually improving in terms of ease of doing business and no investor or investment is facing a downturn here.

Increase in Foreign Investment

A better business environment will attract foreign direct investment in the country and create jobs for young people. According to a World Bank report, the increase in foreign investment has a direct impact on the value of domestic assets.

Better economic indicators point towards the year 2021, which will surely increase the demand for commercial and luxury housing societies in metropolitan cities like Lahore, Faisalabad, Multan and Karachi.

According to the SBP, Pakistan received a record 21.84 billion in remittances in 2019-20.

Digital Vision Pakistan

Digital Vision Pakistan is a much-needed project to modernize the system of governance and for investors, especially for Pakistanis abroad who have been waiting for a digital revolution in government systems and tax matters.

E-governance will eliminate corruption and it will be a relief for the citizens in the context that they will have minimal contact with government officials and their work will be done by simply reporting on one platform.

In addition, the federal government has empowered the relevant authorities to conduct a digital survey of the sale and purchase of the real estate in Pakistan, which will provide citizens with easy access to all real estate information.

This vision of Digital Pakistan by the government also indicates the right direction and promotion of transparency.

Pak-China Economic Corridor Projects

The Pakistan-China Economic Corridor (CPEC) is also an important factor in calibrating the future prospect of Pakistan.

The positive effects of CPEC can be seen in the improved condition of the power sector and the partial completion of the Lahore-Karachi Motorway.

The distance between Lahore and Multan has been reduced from 5 hours to 3 and a half hours. Businesses and investors are now looking at Pakistan as a new economic hub.