Domestic circulation key to economic recovery in Pakistan: Cheng Xizhong

Domestic circulation key to economic recovery in Pakistan: Cheng Xizhong

BEIJING, Jan 19 (APP):In the past year, Pakistan’s economy was hit hard by the pandemic, the locust disaster and natural disasters such as floods. However, with the help of friendly countries, the government and people of Pakistan have overcome one difficulty after another by making scientific decisions, gathering the strength of the whole nation, taking a series of measures to ensure economic growth and benefit the people’s livelihood.

These views were expressed by Cheng Xizhong, visiting professor at Southwest University of Political Science and Law said in his article published by China Economic Net (CEN) on Tuesday.

According to a media report, barring heavy commercial vehicles (HCVs), the entire auto sector gave a brisk performance during the first half of the current fiscal year (July to December 2020) on account of low interest rates and better farm incomes.

Buyers purchased a greater number of vehicles. Car sales jumped by 13.4% to 67,026 units, followed by 134% in jeeps, 32.4% in light commercial vehicles (LCVs), 43% in farm tractors and 19% in two/three-wheelers.

As for the rise in auto sales, he believed there are mainly three direct reasons. First, the overall economic situation is improving. Second, the Pakistan Federal Government has announced a tax reduction. Third, the stronger rupee against the dollar has boosted domestic consumption.

In the context of the world and regional economic downturn, the emergence of such positive economic data is praiseworthy Prof Cheng noticed that other economic data of Pakistan is also showing good momentum.

The export of various commodities, especially textiles and clothing, has increased significantly, the remittances from overseas Pakistanis have continuously increased, and the foreign exchange reserves have remained stable, indicating that the economy of Pakistan is now on the track of steady recovery.

On August 24, last year, Chinese President Xi Jinping pointed out that we should promote the formation of a new pattern of development based on domestic circulation as the main body and mutual promotion between domestic circulation and international circulation.

Domestic circulation has three connotations: first, to cultivate the domestic consumption demand; second, to establish a unified national market; third, to improve the ability of independent innovation in science and technology. Domestic circulation requires us to continuously improve our ability of independent innovation, especially to firmly master core technologies in some key fields

He remarked that China and Pakistan are both populous countries and big markets for automobiles and other commodities.

Under the current situation of pandemic spreading and serious obstruction of world economic circulation, promoting domestic economic circulation and encouraging domestic consumption are conducive to restoring the good state of economic operation.

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