Pakistan puts Gulf countries first in foreign investment strategy

Pakistan is currently facing a challenging economic landscape and has taken steps to stabilize its currency and economy. The United Arab Emirates played a pivotal role by agreeing to roll over its $2 billion debt, which was due for repayment this month. This decision is seen as a significant move to assist the State Bank of Pakistan in maintaining the stability of the rupee, especially in light of the expanding trade deficit. As part of its economic strategy, Pakistan is focusing on attracting foreign investments from Gulf countries while simultaneously looking to enhance trade relations with Asian partners, including China, Bangladesh, South Korea, Japan, Indonesia, Malaysia, and Iran. Furthermore, the country has expressed a willingness to normalize trade ties with India under specific conditions, thereby broadening its economic horizons. In alignment with these measures, the Uraan plan emerges as a crucial agenda aimed at addressing key issues such as food security, female empowerment, and financial inclusion, all of which are vital for incurring positive economic change. The government acknowledges that short-term solutions, like securing debt rollovers, together with long-term strategies aimed at eastern markets, are essential for economic recovery and sustainability. A critical concern for Pakistan lies in the alarming food security situation, especially as a portion of its economy heavily relies on food exports. Data from the Ministry of National Health Services indicates that a significant segment of the population faces food shortages, undermining the potential for boosting export earnings. The situation is further complicated by the tendency for domestic food prices to soar when food exports increase, placing essential items beyond the reach of many citizens. Thus, addressing food security is of paramount importance and necessitates investments in agricultural technology, enhancements in supply chain management, and the promotion of processed food exports to maximize revenue. Moreover, the empowerment of women, who constitute a little over half of Pakistan’s population, is vital for driving economic growth. The country trails behind its regional peers in financial inclusion, with only 13% of women having access to financial accounts compared to 34% of men. In response, the Asian Development Bank has approved $155.5 million in financing for 2024 to bolster reforms aimed at improving women's access to financial services. By facilitating greater participation of women in the financial sector, Pakistan can unlock new avenues for growth and alleviate poverty, thereby fostering an economy that is more inclusive and representative of its population's capabilities. The government must prioritize the removal of barriers to women's participation in the labor market through increased educational opportunities, vocational training, and access to technology and financial resources, ultimately creating safer and more inclusive workplaces through legal reforms.