The Pakistan Tehreek-i-Insaaf (PTI) government is dedicated to tackling the economic challenges faced by the government. On Saturday, Prime Minister (PM) Imran Khan discussed the economic goals of the current fiscal year with his economic team. As per the indicators, the economy seems to be stabilising. The trade deficit has been brought down to 38 per cent due to the strict control of importing goods. The government has also been able to expand its tax net with the last amnesty scheme it offered. Government expenditure is being managed as per the dealings with the International Monetary Fund (IMF) and according to PM’s advisers, the government is set to meet all the targets for the first quarter of the fiscal year set in coordination with the IMF.

This is an encouraging pathline for the government because the economy and its management have been their biggest criticism. While these policies have managed to sustain the economy in the first fiscal year along with loans offered by ally economies, it is important to note that the government needs to now come up with different solutions to sustain the current progress. The current situation that falls in their favour is the rivalry between China and the United States of America (USA). Several foreign investors are looking towards economies like Pakistan due to the increased tariff on Chinese goods. The government should facilitate and welcomes such investors. Along with that, the government is also looking towards reviving sick industrial units. This will provide a boost to the economy along with the giving the construction sector the status of an industry. This will allow steady taxation and widen the revenue collection base, that has met its mark in the first quarter of the year.

PM has also advised his team to come up with out-of-the-box solutions to sustain the economy. An idea to look into might also be the developmental state model. This gives the states the autonomy to micromanage the economy and help build it towards a direction that is beneficial in the longer run. The economic development of Japan is also based on the same model and most of the East Asian countries also follow the same model. This would, however, increase the pressure on the current government that is already accused of lacking business acumen. In order to implement the model, the government would have to understand the intricacies of the current set up instead of borrowing foreign ideas.