World Economy

Pakistan Facing Serious Challenges

Pakistan Facing Serious ChallengesPakistan Facing Serious Challenges

Pakistan has been facing serious challenges, including low savings and investment levels, falling exports, poor spending on the social sector and reliance of the tax structure on stopgap measures that create distortions in the economy, according to the State of the Economy 2015-16 report released by the State Bank of Pakistan on Thursday, APP reported. It praised the government for macro-economic achievements and expressed hope for a better future with a higher economic growth rate. However, it identified a number of challenges that the economy has been facing. There are certain challenges that deserve the undivided attention of all stakeholders, said the report. “Pakistan needs to increase its savings and investment levels. Although public investment is increasing despite resource constraints, investment by the private sector has not increased sufficiently,” it said, adding that this has inhibited the country’s potential growth. Declining exports continue to pose a major challenge for a sustainable external account. Some recent policy fixes are welcome steps and will have positive impact, but structural issues in the export industry should also be resolved, it said.


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