Month: June 2013

Pakistan Economy 2013

sharifThe Pakistan economy, 2013, is probably facing the worst statistics in over 10 years.  However, there still seems to be an air of optimism in the region.  It is the widely-held belief these days that the new government is going to reverse this trend. When Nawaz Sharif – leader of the Pakistan Muslim League – was voted back in to lead the country, a clear message was sent to the Pakistan People’s Party – you failed to build up the region and we want to give the Pakistan economy 2013 the best chance ever – we want to see what Sharif can do.  It didn’t help matters that the Party that has now been booted out failed to curb other socio-political issues such as corruption, violence and power cuts either.

Sharif supporters hope that when he comes back to lead the country, he’ll do a better job of enhancing the region’s economy – especially given the mess his predecessors left it in.  He has already proven somewhat worthy through his political platform pledging economic revival and improving governmental finances.  It is crucial to ensure the Pakistan economy 2013 encounters nothing less than a complete “turnaround,” which will then have a ripple-on affect of stability in the political realm which is crucial for America’s battle against Islamist militancy.

Still, it has to be remembered that given the region’s economy has been deficient for so long, even Sharif will not be able to work miracles. It is going to take time to get the Pakistan economy 2013 to a place of respect and in a place of true potential competition vis-à-vis its rival India.  One of the first tasks the new government is going to have to implement is collecting owed taxes and completely restore power companies enabling them to produce enough electricity without being a drain on public funds.  Since less than one million of Pakistanis pay income taxes, this has resulted in exorbitant fiscal deficits that reach nearly 8 percent of GDP.  This has to change and it is hoped that it will be one of Sharif’s first moves which will ultimately result in the Pakistan economy 2013 booming in the way those who voted for him feel it has the potential to do.

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