- From inflation decline to stock market rally economic progress but structural hurdles linger
Interview with Ms. Tara Uzra Dawood, CEO Dawood Global Foundation and 786 Investments Limited
PAGE: Tell me something about yourself, please.
Tara Uzra Dawood: I am CEO of Dawood Global Foundation and 786 Investments Limited. Over the years, I have focused on promoting financial literacy, inclusivity, and sustainable growth. I am also actively involved in philanthropic initiatives aimed at empowering women and communities in Pakistan and beyond.
PAGE: How was 2024 for the global economy?
Tara Uzra Dawood: The global economy in 2024 showed a mix of resilience and uncertainty. While geopolitical tensions and climate challenges posed hurdles, advancements in technology and green energy offered opportunities for recovery. Inflation stabilised in major economies, and global trade volumes showed modest growth, reflecting the world’s adaptability.
PAGE: Did the Pakistani economy fare well in 2024 vis-à-vis 2023?
Tara Uzra Dawood: Pakistan’s economy showed improvement in certain areas compared to 2023. The revival of the IMF programme and fiscal reforms brought macroeconomic stability. A significant reduction in inflation and interest rates contributed to an improved business environment. However, structural challenges like debt servicing and energy issues continued to weigh on the overall progress.
PAGE: How would you comment on the challenges and achievements of Pakistani economy in 2024?
Tara Uzra Dawood: The year 2024 was marked by both achievements and challenges for Pakistan’s economy. On the one hand, reforms led to increased foreign investment and better fiscal discipline. On the other, structural challenges, including the circular debt in the energy sector and low export diversification, remain persistent. The resilience of Pakistan’s capital markets, particularly the PSX 100 Index reaching over 110,000 points, reflects renewed investor confidence and optimism about future growth.
PAGE: How would you comment on the growth of the economy during the current year in the wake of the developments that took place in 2024?
Tara Uzra Dawood: Economic growth in 2024 benefited from declining inflation, lower interest rates, and improved investor sentiment. The impressive performance of the Pakistan Stock Exchange, with a 150% rally over 17 months, underscores the impact of these positive developments. However, sustaining growth will require addressing structural issues, enhancing productivity, and improving governance across sectors.