On the economy side, the nation's GDP recorded continuous growth, an impressive growth of more than five percent in 2017. From 2014, the inflation is on a receding trajectory and remained within 4.5 percent in 2017. The rupee-dollar parity was maintained at Rs 105 to the dollar, which contributed to the contained inflation.
On the other hand the current account balance is on steep decline since 2014, hitting its lowest in 2017. The exports too are on decline even though imports are on the rise. The debt is growing. The security situation in the country in 2017 witnessed significant improvement.
With the establishment of new power plants based on LNG and coal the power on grid is expected to improve which will be put to test in the summer of 2018. Affordability of power for the consumer remains doubtful.
The year 2017 experienced the strengthening of the country's institutions with enforcement of their writs and their alignment to roles assigned to them in accordance with the constitution.
The foreign diplomacy of Pakistan strengthened and gained the credentials of being independent and in country's interests. The perception that Pakistan is isolated in the foreign community is flawed. Pakistan's position has strengthened and the country is looked upon with respect. It has aligned itself with China, Russia and Turkey, which are among the emerging economic and regional political powers. Pakistan's neutrality in the Yemen conflict and publicly declaring "no more" to America in its war in Afghanistan portrays Pakistan's determination to protect its national interests as number one priority.
The prime achievement of 2017 is the positioning of the China Pakistan Economic Corridor (CPEC) on firm track with its footprints embedded on Pakistan's soil. It has sent the message to all well-wishers and adversary that CPEC is now there to stay with no chance of derailment - more so because CPEC is the most essential part of China's One Belt One Road (OBOR) with high economic and political stakes. CPEC has positioned Pakistan at greater heights of global politics and economic gains.
The bad news of 2017 is that Pakistan continued to suffer from bad governance in all segments of state machinery which diluted the gains made. The most damaging was the poor economic governance seen in the shape of loss-making business entities in the public sector such as PIA and the Steel Mills bleeding the country's economy. The same goes for power utilities in the public sector, whose conduct has resulted in an unending Circular debt, crippling of industry and exports.
The year 2018 is a year of opportunities and challenges in the economy, local politics and global diplomacy. How well the nation meets these challenges will determine how well we fare in 2018.
Prime Minister Abbasi is bullish that the country is all set to meet the target of a GDP growth of six percent with the agricultural growth at 3.5 percent, industry 7.3 percent and services at 6.4 percent.
After a slump in 2017, the construction and real-estate industry is projected to pick up in 2018 driven by developers and needy buyers. The retail and service industry is projected to continue on its growth trajectory, promising job opportunities. The SMEs too are poised to be on a growth trajectory.
The influx of Chinese investors and their partnering in large, small and medium enterprises has a real potential to spur economic growth in Pakistan. Also, investments made under CPEC in the development of Pakistan's infrastructure, its energy sector and the establishment of special economic zones has the potential to usher in an era where investors from other countries will look upon Pakistan as a country to favour for business and investments.
The foremost challenge is the twin fiscal deficit which, if not corrected, can reverse the rising trend of growth and may force Pakistan to revert back to the IMF, and this time with more stringent conditions, resulting in massive inflation with dire political consequences.
The other challenge is the conduct of the political parties in the forthcoming elections in 2018 and aftermath. Politicians' irresponsible conduct can lead to a political upheaval with consequences for the nation's economy. The silver lining is that the growing Chinese interest in Pakistan and the resulting mutual benefits could be a catalyst in stabilizing the political system of Pakistan.
Pakistan's success in 2018 lies in strict fiscal discipline, tight monetary control, good economic governance and responsible conduct of our politicians in the best national interest. Also foremost is to convert loans into revenue generation initiatives enhancing country's ability to payback.
This is not too much to ask from the country's stakeholders in these testing times for Pakistan.
(The writer is former President, Overseas Investors Chamber of Commerce and Industry)