Azgard 9, Textile Industry and Macroeconomic Situation of Pakistan

Abstract

Although the economy is still growing but it is a crucial stage, Interest rates are increasing which might attract foreign capital but domestic investment will as a result decrease. A current account deficit pushes the government to borrow from the state bank which in turn leaves little money for the private sector and this is the cause of the increase in interest rates. Due to high inflation rates locally produced good are becoming less competitive but at the same time due to depreciation of the exchange rate of Pak rs, imports are costing more and consumer are caught in a spiral. The per capita income increase is mainly due to the inflation rate while purchasing power still remains low. For the industries the energy crisis is heavily affecting output, on the other hand the stock market seems to be in its bullish phase and investors can continue to keep hopes from it in future, In conclusion Pakistan promises good returns provided it can work on the energy crisis, make its exports more competitive support industries such as the textile industry which have suffered majorly in the energy crisis. At the end all of this downward spiral was provided a boost by the western recession from 2008 onwards and since then Pakistan’s economy has been caught in a vertigo.