Pakistan Prosperity Index- February 2021

PRIME’s latest Prosperity Index, the first installment of 2021, reveals a promising picture for post-COVID economic recovery prospects. The pandemic year is concluded with Pakistan Prosperity Index (PPI) standing at the highest mark, 125.3 (December 2020). A special feature of this edition is simultaneous improvement in purchasing power, credit to private sector, growth in large scale manufacturing and trade volume. 2020 was a tough year across the globe, marked by uncertainty in the financial and business world. Fortunately, Pakistan’s economy appears to be on a rebound, with key economic factors on the rise, namely, large-scale manufacturing, trade volume, and private sector borrowing. 

The report establishes the rise in prosperity as a result of the improvement in four indicators aggregated to calculate PPI. Purchasing power took a dip in the last two quarters of 2020 but started recuperating modestly in the last month. Large-scale manufacturing had consistently been on the rise since August 2020 but has yet to transcend its level at the beginning of the year 2020. 

Owing to pandemic initiated restrictions in the global market, the trade volume fluctuated throughout 2020. It has shown a pickup in the last quarter and the projected trajectory promises to be conducive to economic recovery. Lastly, private-sector borrowing has surged to PKR 287.4 Billion; this figure speaks of the rebound of business and investment confidence.  The report links these positive developments to the easing down of COVID’19 restrictions, fiscal stimulus, relief packages, and low cost of borrowing (interest rate).The government’s policies aimed at rehabilitation of the business sector are bearing fruit. During these uncertain times of global distress, the country appears to be on a path towards prosperity. To read more, download the file attached below:

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Policy Research Institute of Market Economy

آزاد معیشت – خوشحال پاکستان