It seems that the economy of Pakistan is finally improving as per capita income rises from $1,531 to $1,629. This has been reported by THE NEWS and according to it, the government has performed well in the last fiscal year.
The report says that the government was able to achieve all the targets except for two which are investment and saving targets. In the entire South Asian region, it is only Pakistan which has the lowest levels of saving and investment rates. The arch-rival India is doing pretty well in both the saving and the investment sectors. Despite the low saving and investment rates, the per capita income is constantly on the rise which is good for the economy of the country.
The core reasons which resulted in the rise of the per capita income are:
- The rupee has stayed stable against the US dollar.
- The economy of the country is also steadily on the rise.
- The growth rate of the population has been controlled with lesser people being born in the country.
Stabilization of Rupee
The Pakistani rupee is being exchanged at a good rate against the US dollar and this is one of the foremost reasons of the rising per capita income in the country.
The economic growth of the country has been stable for the past few months and this has contributed to the increase in per capita income. Even international forums like Bloomberg are giving positive feedback regarding the economic condition of the country.
Slow Population Growth Rate
According to Pakistan Bureau of Statistics, the growth of population in this fiscal year has been 1.9%. It was above 2% in the last year and the decrease in population growth rate has increased the per capita income.
The Finance Minister of Pakistan, Ishaq Dar, has revealed that the focus of the government is to achieve a 6% GDP growth rate in the upcoming fiscal year.
While giving an interview to the Nikkie Asian Review he said, “The government is committed to making rapid growth in infrastructure and uplifting lives of poor in the country. For this purpose, we are gaining help from international community.”
It is very important for the government to resolve all the issues and problems in the investment and saving sectors. Only after doing so it can achieve a 6% GDP growth rate and the economy of Pakistan can prosper.