Govt policies to further strengthen rupee, stabilise economy

Lahore: The Pakistan Economy Watch (PEW) on Sunday said government policies would further strengthen rupee and stabilise the economy while dollar will witness additional retreats.

The confidence of local and foreign investors has been steadily increasing which will result in around 13 billion of forex reserves by the yearend, it said.

Manufacturing, construction and remittances are picking up while the stock market is getting better reflecting sentiments of the investors, said Dr. Murtaza Mughal, President PEW.

He said that pace of economic development is linked to the pace of reduction in terrorism, energy scarcity and illiteracy.

Successful foray back into the international bond market after a gap of seven years and oversubscription is proved that international investors have pinned high hopes in the future of Pakistan, he said.

Dr. Murtaza Mughal said that those who have criticised the high interest rate offered to investors have overlooked the ground realities.

Foreign investment, sale of telecom licences, World Bank’s loan, and inflows from multilateral agencies would not only improve situation but help government reduce borrowings from the central bank, he opined.

Dr. Murtaza Mughal said that government must reduce budget deficit, unemployment, inflation, unnecessary expanses, losses by state-run corporations, dependence on loans, and uncertainty in energy sector to ensure sustainable growth.