A recent report published by Bloomberg highlights Pakistan’s focus on the export-based economy while giving an interview in Karachi to Bloomberg, Reza Baqir governor state bank of Pakistan said, “A very shift that has occurred in our thinking is to shift from inward economy to outward economy.” And further he added, “Countries that have sustainably raised their living standards, emerging markets particularly, have relied on exports.”
Baqir was speaking from a very different angle this time, he was aware of the previous mistakes the country has done so far and said, “The measures that are in this program are all measures that we think are going to lay the foundations for sustainable growth and to end the boom-and-bust cycles that have historically plagued us.”
Are We Ready For Exports?
Pakistan is the country which falls behind in production currently, in order to produce in large quantities and compete with the global market the production costs must be minimized and quality improved. The government for the last year is strangling the business activities with taxes, an increase in electricity and gas prices, and uncontrolled pricing hurts business production.
In this scenario what government could do to rely on exports? It is the basic question the government has no answer yet. However, the government policies to curb imports worked well during the last year, the government has collected more revenue via import taxes and was able to maintain a healthy balance of trade. But growth in exports was not satisfactory for the country like Pakistan.