“The Only Thing That Is Constant Is Change” ― Heraclitus. Despite the local, regional and global tensions, the world economy has been growing at the rate of 3.4% p.a. as per 2016. It is estimated that the global economy rate of growth would increase by 0.2% in a year to reach 3.6% growth by 2017. What is less known is that many of the top ten countries contributing to the global growth might not be on our radar. According to IMF, Pakistan ranks 6th in its contribution to the global economy, contributing 1.2% towards global growth as per 2014-15.
In April 2016 Pakistan’s COAS (Chief of Army Staff) dismissed 11 high ranking military officials over corruption. As establishment taking the lead not just on this matter but cracking down on non-state actors is an indication of improving law and order in the country. If the approach of the establishment remains consistent then Pakistan would see a new era for its economy.
The new CPEC (China Pakistan Economic Corridor) will play a significant role in further developing the nation’s economy. The USD 46 billion investment would play a crucial role in developing the country’s infrastructure. It involves the construction of a connection from Pakistan’s newly built Gwadar port to China and Central Asia. Furthermore it will serve as a catalyst in enhancing mutual trade and with other GCC countries. Experts say that once the project is completed Gwadar International Airport will take over Karachi’s Jinnah International Airport as the biggest and busiest airport in the country. Along with the construction of Gwadar airport, small airports are being built and being given international status.
Among such airports are DI (Dera Ismail) Khan airport and Bannu Airport. The national carrier PIA (Pakistan International Airlines) has seen improvement on its Rs 1 billion record loss ending last year. In an effort to weed out corruption from the organisation, PIA made redundant around 308 who acquired their jobs without holding a degree. PIA in order to improve the quality of its service re-registered a premium subsidiary under PA (Pakistan Airways). PA has not started operations yet and the project is still undergoing confirmation. Experts at Brookfield Aviation International Ltd have realised the potential in the Pakistani market and in particular with the aviation industry. We believe that under the current circumstances there will be a high demand in the aviation sector in Pakistan with not just more aircraft being needed but also it will become a major airline transit hub in the region.