Pakistan pushes ahead with economic plans amid global trade disruptions

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LAHORE: Pakistan’s economic planner is not taking any benefit to former US President Donald Trump’s trade policies, which continues to keep key measures according to the schedule. The government organized a conference on mineral resources investors and started a Pakistani conference abroad on time, while the Prime Minister has moved forward with his planned foreign tours.

The global economy has been substantially witnessed, the main reason for this is due to the Trump era trade policies that have long affected principles-from the US trade war to the taxes imposed on traditional allies. In response, many countries have regained their trade, industrial and investment policies to protect themselves from such external shocks.

Pakistan faces even more challenges than many of its old economies. When global trade interrupted, the country was on a slow path for economic recovery. This requires immediate foreign and domestic investment in several sectors. At the same time, the government needs to significantly increase tax revenue to eliminate its fiscal deficit. It is very important to increase exports while preventing imports – but the implementation of new taxes has raised doubts about the recent trend in exports. These obstacles are also likely to reduce revenue and put more pressure on the Pakistani rupee.

Nevertheless, the country’s planners have been focused. Despite the growing security concerns in heavy provinces like Khyber Pakhtunkhwa (KP) and Balochistan, they proceeded with an investor conference to promote opportunities in the mineral -rich areas of Pakistan. It seems that the government has assured investors about the safety of their plans, and all provinces are allegedly on the board to approve the united legal framework of natural resources. These steps indicate a long -term strategy that aims to mobilize resources and build it in investors’ confidence.

However, domestic investors are cautious, and foreign direct investment is maintained due to political and security concerns. Without solving these basic issues, such efforts can only produce limited results.

The Prime Minister’s foreign visits can play a useful role in diplomacy and economic engagement – especially to improve trade access, secure investment and increase remittances. However, such visits should be well targeted and then there will be a meaningful policy facility at home.

Overseas Pakistanis send more than $ 30 billion every year, making them important to their engagement. Nevertheless, the real challenge lies in incorporating these funds into the productive sectors – the property beyond immovable and consumption. In fiscal year 23, Pakistan received $ 30 billion in remittances, but only 2-4 percent of the industrial or service sector has been invested. The majority – more than 80 % – is used for daily costs and real estate.

Important obstacles to productive investment by overseas Pakistanis include lack of confidence, bureaucratic obstacles, security concerns and inadequate methods of resolving conflict resolution. The ongoing conference must be resolved on the head. Policy makers performed well to examine how Indian Daspura has played a role in changing India’s economic rise.

India received $ 125 billion remittances in 2023 – the highest global. Of this, an estimated 15-20 % of the production sectors such as industry, services, small businesses and startups were installed. Startup India, non -residential Indians (NRIS) investment privileges, and dye bonds have helped to convert these funds into development -based routes. Many NRIs have invested in technology, education, health care, hospitality and even venture capital.

Another obstacle to Pakistani policy makers is resistance from the local business community, often in response to documents, tax imposing and subsidies reform efforts. Although reforms that improve transparency, business and foster fair competition should be implemented, it must be included in meaningful consultations to avoid reaction and prevent reform stroke.