Pakistan economy showing signs of recovery as COVID weakens, says Hafeez Sheikh

The economy of Pakistan has started showing signs of recovery as the coronavirus pandemic lose its grip in the country, said Adviser to the Prime Minister on Finance Abdul Hafeez Sheikh.

Addressing a webinar organized by Karachi Council on Foreign Relations, the SAPM said that the improvement in the economy is also reflected by various indicators including a robust growth of Pakistan Stock Exchange (PSX), which was recently announced as one of the best performing bourses by Bloomberg.

Furthermore, the 33 percent increase in sales of cement and 23pc growth of taxes during the last month, also signifies improvement, he said.

Sheikh added that international rating bodies including Moody’s have also acknowledged stability returning to various sectors of the economy.

Earlier, while presenting the two-year performance of his ministry, Hafeez Shaikh said that Pakistan was facing huge challenges when the current government came to power. Challenges such as high current account deficit were brought drastically due to incumbent government’s sound fiscal policies, he said. Furthermore, the budget of the government was curtailed owing to austerity measures adopted to fend off the financial crisis. Whereas no new taxes were imposed in budget 2020-21, and throughout the current year the government had not borrowed from the State Bank of Pakistan (SBP), he said.