The year that has just passed us by proved to be long and hard for bankers, brokers and the barons.

Despite being politically tumultuous, 2017 did bring some joy in the life of the majority of people with upswing both in agriculture and industry.

The twin current account and balance-of-payment deficits were alarming, but less-interrupted power supply, controlled inflation and a moderate pickup in the job market lifted the pall of gloom as the light at the end of the long tunnel reached masses aspiring for a secure, decent life.

In a country of the worst performing capital market (index dipped by 17 per cent), the GDP growth rate in the calendar year is expected to be around 6pc; the highest since the revival of democracy in 2008.

During the General Pervez Musharraf/Shaukat Aziz era in the mid-2000s the growth rate was over 6pc, but its base was too urban and too narrow.

The dividends of post-9/11 ally status with the USD did generate higher growth rates, but the mismanagement of easy money created a glittering casino economy that collapsed with the exit of the dictator and his cronies.

The improvement in the quality of growth in 2017 means that the benefits would be more widely shared across classes and regions in the country.

Ishaq Dar, the man who was bolstering the economy at the beginning of the year needed crutches to stand on his own two feet by yearend.

The PML-N government deserves due credit for the turnaround based on comparatively solid grounds.

It would, however, be hard to imagine such gains without China’s valuable input.

The government did make some interventions to prop up the rural economy, but more than the policy interventions, favourable weather conditions improved the performance of agriculture and the well-being of the rural masses over the past year.

With all the shortcomings in terms of transparency and the debate for a better deal for the country, the realisation of a whopping $27 billion investment in power and infrastructure projects under CPEC in 2017 eased logistical hindrances in the way of economic expansion.

After decades the business circles showed inclination towards looking beyond the avenues of ready returns.

Energy projects and investment in malls dominated their imagination, but booming construction-related industries and the decision on the Special Economic Zones did motivate and push them towards the draw-ing board to conceive new plans/industrial projects.

The agriculture sector rebounded as both crop and non-crop sub-sectors posted higher growth. The expect-ed growth of around 4pc was highest in a decade. Indus-trial growth also picked up to around 8pc, according to a current review of the economy in the relevant ministry.

The year, however, was a nightmare for capital market investors who suffered in horror as several hundred millions evaporated in thin air around May.

From 47,807 points at the start of the year, it hiked to 52,876 on May 25. The index started heading downward from there and by December 22, KSE-100 Index had crashed to 39,471 points; a loss of 8,336 points.

It is down 17.4pc since January 1, but actually it fell 25pc in seven months after rising in the first five months with a depressing decline of 13,405 points.

Market capitalisation shrunk from Rs9.692 trillion to Rs8.360 trillion; a fall of Rs1.332 trillion (13.7pc). At peak in May, market capitalisation was Rs10.446 trillion.

It was a rough year for the banking industry as well since it had posted stellar performance earlier on.

Several factors combined to force the banks out of their comfort zone.

The risk-free easy option of investment in the government securities shrunk, low interest rate squeezed the banking spread and a greater scrutiny of performance exposed the soft belly.

Several cases in big banks surfaced and the news of heads rolling in treasury departments did slip through to the national media.

The slapping of $225 million on Habib Bank by the Department of Financial Services, the New York banking regulator, for violating compliance standards, shook the banking sector.

The bank had to surrender the license before it could renegotiate the penalty amount that left a deep hole in its profits.

No one was expecting austerity as political parties geared up for elections mid-2018.

Despite moderately better resource mobilisation the internal and external public debt increased sharply.

The under-performance of exports, massive increase in imports, moderation in remittances inflows and slow pickup in foreign investment from countries other than China complemented each other to mount pressure on the external front.

The paralysis in the government after the ouster of PM Nawaz Sharif in July did not help.

The unceremonious exit of finance minister Ishaq Dar and the pressure from IMF forced the State Bank to adopt a more flexible approach towards the exchange rate.

In December, rupee shed close to 6pc of its value in search of a more realistic benchmark against the dollar.

It was a year spent in anticipation of crisis by doomsayer.

There was a silent campaign to challenge the government’s position on the economy. The economic managers were accused of creative accounting.

There is some element of truth in the perception that PM Abbasi’s team underplays the external front vulnerabilities as debt payment obligations mount.

The government has also not been forthcoming on how it intends to handle the situation if the situation aggravates. It pushes the impression that with the economic credibility earned under the government, it could turn to the global market with Islamic bonds.

Dr Nadeem Javed, Chief Economist, Planning Commission, was confident that the economic growth achieved in the year was more inclusive.

“Agriculture growth in Calendar 2017 was the highest in five years. In a country where 60pc of the population is linked directly or indirectly with the agrarian economy, a dollar gain in agriculture equals a $2 gain in other sectors,” he said.

“Had there been no political uncertainty the pick-up in the economy could have been better. Efforts to significantly improve revenue generation through stabilisation policies did not achieve in three years what the growth-centric policy achieved in the last year. Current data shows 22pc hike in tax collection in the first quarter of the current fiscal,” he said over the phone.

“Except for inflation and rupee revaluation, all other projections turned out to be realistic. Inflation was less than anticipated, but other expectations on expansion-ary policies, reluctance of the government for major structural reforms and the progress on CPEC were on the dot,” commented an independent economist.