Imran Khan's visits to various Muslim countries and Pakistan's friends have rescued the situation for Pakistan in the short term. SBP also says the economic crisis is over for now. What do we need to do for the long-term to fix this situation permanently?
- Pakistan has come out of financial crisis, says State Bank
- SBP governor says the country is on the right path
- and capable of meeting all economic challenges
- That is thanks to PM Khan’s visits to China,
- Turkey, Saudi Arabia, UAE and Malaysia
- Investments and financial assistance are on their way
- Governor Bajwa said the current account deficit
- was a problem, but financial assistance from foreign friends
- has helped bridge the external deficit
- Govt has also not exceeded borrowing limit from SBP
- It has borrowed Rs3 trillion and returned Rs2 trillion so far
- PM Khan’s China visit last year brought $6bn investment
- Khan also invited Turkish and Saudi investors to join CPEC
- Recently, Saudi Crown Prince visited Pakistan
- and promised investments worth $20bn
- among several other deals
- While improvements are visible, there’s still a long way to go
- In July 2018, Pakistan reached its lowest
- current account deficit at US$5.798 billion
- As of now, it stands at US$ 4.082 billion
- Pakistan also has a trade deficit to minimise
- as its imports are twice as much as the exports
- The trade deficit is Rs 341.272 billion