Pakistan economy sees an upward swing

Written by PTI | Islamabad | Updated: Apr 13 2014, 23:57pm hrs
Pakistan economyWe are already giving gas and electricity to industries on a priority basis, Official said.
Pakistan's economy has seen an upward swing in the last few weeks that has taken the cash-strapped country's stock market to an all-time high and brought down the value of Pakistani Rupee to a nine-month low.

The primary reasons for the upward swing are the USD 1.5 billion donation by an Arab country, spectacular success of its Euro Bonds that mopped up USD 2 billion and upcoming 3G/4G auction besides expectation that IMF will clear its fourth

tranche of 36-month USD 6.78 billion loan to the country.

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"The prime minister is focused on improving the economy. The success of Euro Bonds and the stock market is a proof of that," a senior government official told PTI.

Asked how long will Pakistan be able to sustain this upward swing, the official said, "The focus has been on industries. We are already giving gas and electricity to industries on a priority basis. The GSP Plus status granted by the European Union is also a great success. You will see its effects on the economy by June."

The GSP Plus status will allow almost 20 per cent of Pakistani exports to enter the EU market at zero tariff and 70 per cent at preferential rates.

The stock market is trading at record over 29,000 points while the value of the rupee has come down to a mere 96.30 at inter-bank rate. The value of the rupee was nearly 107 in December against a dollar.

Officials said that the upcoming 3G/4G auction later this month would also give a boost to the economy as Pakistan plans to raise USD 2 billion through it.

The government is highly optimistic about revival of the economy and see Pakistan's return to global debt markets after a gap of seven years as a sign of "improving confidence" of international investors in its economic policies.