The United Arab Emirates has agreed to roll over its $2 billion debt due for repayment this month. This decision should help the State Bank keep the rupee stable amidst the expanding trade deficit.

Meanwhile, Pakistan is taking two commendable steps — one under International Monetary Fund pressure and the other in response to shifting geopolitical realities — to strengthen its economy. The hybrid regime has finally resolved to downsize the bloated government, which consumes a significant portion of the country’s annual revenue.

Additionally, it has begun implementing its ‘look towards the East’ policy to generate export earnings and attract foreign investment. This strategic pivot seeks to reduce reliance on Western markets, where political constraints are making it increasingly difficult to promote exports and secure investments.

Pakistan is now prioritising Gulf countries for foreign investment, while aiming to unlock greater trade potential with China, Bangladesh, Japan, South Korea, Singapore, Indonesia, Malaysia and Iran. It has also signalled a willingness to normalise trade relations with India under specific conditions.

The Uraan plan must prioritise food security, female empowerment, and financial inclusion to incur any meaningful change in the country

Both short-term measures, such as securing debt rollovers, and long-term initiatives, such as focusing on eastern markets and rightsizing the government, are vital under the current........

© Dawn Business