Economy stabilises, but business woes persist

The country's macroeconomic stability has improved during the first six months of the current government.

The decline in foreign exchange reserves has been halted, while exports and remittances have increased.

According to the IMF's methodology, forex reserves have remained stable at around $20-22 billion.

Higher export earnings and remittance inflows have helped generate a current account surplus. Some stability has also returned to the banking sector.

However, there has been no meaningful reform at the micro level of business and trade. Businesses say they have seen little improvement in their day-to-day operations.

From land mutation and dealings with deputy commissioners' offices to the clearance of imported goods, corruption and extortion persist at every stage.

Concerns over inflation, investment and employment also persist. High prices of essentials remain a major concern for ordinary people, employment has not improved, and concerns over the investment climate have intensified.

Problems also persist in clearing imports. Although goods are supposed to be cleared within a day, the process often takes a month or even a month and a half.

The government itself faces financial constraints and cannot meet its expenditure from revenue earnings, forcing it to borrow more from the financial sector.

Political parties should understand the state of the economy and the country's investment climate. Many IMF recommendations have been adopted, but implementation remains inadequate.

Macroeconomic stability has returned but without micro-level reforms, these gains will not be sustainable. Reducing bureaucratic hurdles, eliminating corruption and adopting business-friendly policies are essential.