Prime Plus October 23

In the first section of the report, the establishment of the Special Investment Facilitation Council has been analyzed by reviewing the need for such a council, its structure and functions of the council, and projects identified by the government. The ability and efficacy of SIFC to attract investment are also analyzed.

In Section 2, we present economic data on major macro indicators including Inflation, Current Account, Public Debt, Foreign Direct Investment, Government borrowing, and a general trend of how the economy is behaving, where we reach the conclusion that Pakistan’s economy is currently facing insurmountable challenges and not performing at its potential level.

Section 3 paints an economic outlook of the country. Pakistan like other countries around the globe is experiencing severe inflationary pressures and a slowdown in economic activity due to the continuity of the Russia-Ukraine war, political uncertainty, and volatility in the value of the rupee. The increase in utility prices have put significant financial burden on the lower income groups. The economic activity, especially the output of the manufacturing sector, has started to improve after the relaxation of import and exchange rate controls. Proactive measures at the fiscal and monetary policy fronts are inevitable to promote sustainability. Furthermore, reforms are needed in the energy sector to ensure stability and promote economic activity in the country