Further Reduction in Interest Rate: Good step | Gwadar Port Active | Controversial declaration of Gandapur: Ishraq A Hashmi

During the last five years, the global recession has affected a weak economy like Pakistan, it is enough to estimate it from the back-breaking inflation and the highest interest rate. It was revealed that the government of Pakistan would link the interest rate to the consumer price index, after which a large number of investors withdrew their funds from business or transferred them abroad and the national economy repeatedly reached bankruptcy. In all this background, the elected government started working on the economic reform agenda immediately. The first result of which was seen in the last two-three months in the form of breaking the five-year stagnation of inflation, and successively from June 2024. The third rate cut by the State Bank on September 12 brought the interest rate down to 17.5 percent, but industrial and commercial circles are still calling it against their expectations. 

The State Bank says that inflation during the last two months. and core inflation have both declined sharply, while global oil and food prices have fallen to record lows and that average inflation in the coming months is likely to be lower than the previous forecast of 11.5-13.5 percent. According to the bank, in recent weeks There has been an improvement in business confidence during the period. The representative organizations of businessmen believe that the adoption of tight monetary policy has made borrowing unreasonably expensive and this has led to damage to industry and trade, increasing the cost of doing business, and manufacturing. The sector has been badly affected. The fact is that the business community wants to see interest rates in the single digits, which they say will encourage borrowing and reduce costs to expand business. On the other hand, the IMF's All matters of the seven billion dollar loan program have been settled amicably, according to Finance Minister Mohammad Aurangzeb, the meeting of the Executive Board of the International Monetary Fund has been scheduled on September 25, in which there is a bright possibility of approving the special loan program for Pakistan. 

The IMF has confirmed that Pakistan has fulfilled the conditions of the bailout package of seven billion dollars, the growth rate of the economy has increased while the inflation rate has also decreased. The approval of the seven billion dollar loan program from the MF led to an extraordinary acceleration in the Pakistan Stock Exchange on Thursday. Economists say that the current reduction in inflation is not due to the strict monetary policy of the State Bank, but rather the government. It is possible due to the improvement in agricultural production along with certain administrative measures. According to him, stability in the value of the rupee is also a major reason for reducing inflation, which is seeing stability in the cost of imports. Decreasing prices have stabilized foreign exchange reserves. It is necessary for the government to take measures under the economic reform program that will lead to increase in exports, remittances and investment. Reforms in the taxation system are an indispensable necessity of the economy, while no expediency should be taken into account in the austerity program.

Gwadar Port Active

Among the wonderful locations and precious natural resources that Allah has given to Pakistan, there is a beach of about 1,000 miles, of which 770 miles are located only in Balochistan. Gwadar was originally a fishermen's settlement. Thanks to the China Economic Corridor (CPEC), it has now become a major port, which has yet to become operational despite its vast scope for international trade. approved to arrange for 50% of its imports including wheat, sugar and fertilizer to be delivered through Gwadar port and also directed to increase the rate of exports from this port in future. And the quarterly report of exports will be presented to the cabinet.

Gwadar was an area of ​​Baluchistan which was with the Gulf state of Oman at the time of the establishment of Pakistan. In 1958, the then Prime Minister Malik Feroz Khan Noon bought it and added it to Pakistan. The city was a source of livelihood for fishermen, but it had the potential to become a major port. Work on it started under CPEC, and today it is not only an international trade, but also a strategic port in the eyes of the world. If this port becomes fully functional, then it will provide employment to the people of Balochistan and the country's economy will also be stable, the burden on Karachi port will also be reduced. Opportunities should be provided to benefit. It would not be out of place to say that Gwadar is the economic future of Pakistan, which should be activated to its full potential.

Controversial Declaration of Gandapur

Chief Minister Khyber Pakhtunkhwa Ali Amin Gandapur, who appeared on the scene for the first time yesterday after his highly objectionable speech at a PTI rally in Islamabad, established peace and order in his speech at the Bar Councils Associations ceremony in Peshawar. A new conflict has been created by announcing to send a delegation to Afghanistan for direct negotiations. Without naming anyone, he said, "You keep your policy at home, it is my duty to save the lives of the people of my province." I will send a delegation to Afghanistan, I will sit and talk with Afghanistan and solve the problem. He clarified that no province can directly negotiate with any country. He said that the path on which Chief Minister KP and his people are walking is poison for the country.

Undoubtedly, the declaration of direct negotiations on controversial issues by a province with a country is practically equivalent to a declaration of war against the federal institutions and the government, which cannot be allowed in any country in the world. It is certainly possible and not objectionable to have a difference of opinion on policies between the leadership of the center and the provinces, but this difference should be settled through discussions with the federal government and institutions. Many people in the country believe that Pakistan and Afghanistan should resolve their controversial issues through mutual negotiation instead of using force, because tension in relations is against the interests of both countries, but Chief Minister Gandapur's direct contact with Afghanistan. The announcement of negotiations is not correct in any way, in order to convince their position, they should negotiate with the federation within the country because the other way will be disastrous for national unity.