Political stability boost economic indicators

Despite challenges on multiple fronts, major economic indicators have shown positive signs of sustainable growth, mainly owing to improved foreign exchange reserves, workers’ remittances and investments because of political stability.
For the first time in six years, GDP rate exceeded 4% (4.14%) in the financial year 2013-14. A considerable improvement has been witnessed in Large Scale Manufacturing (LSM) while inflation was recorded at a single digit, according to official data.
“The economic growth has been possible due to political stability, good governance and the will of the nation to eliminate terrorism, as indicated by the ongoing Operation Zarb-e-Azb,” believed economic experts.
The main indicator of a well-performing economy is the stock market. The performance of Karachi Stock Exchange proves economic growth as its index has touched a historic level of 34,000 points. This shows investors’ confidence in the country’s economy.
Overseas workers’ remittances also showed an impressive growth of 15.25% to $8.981 billion during the first half of current fiscal year (2014-15).
The exports started showing positive growth in December 2014 as the same grew by 9.66% as compared to November 2014. Though the overall goods trade deficit increased, the same in services decreased by 23.84% during first five months of the current fiscal year.
Currently the foreign investment into the country is about 14% of GDP, which will be increased by 1% for the next five years, said official sources.

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