Pakistan’s imports are exceeding beyond the limits, top category of import is machinery and transportation equipment including luxury cars.
On one hand Pakistan’s exports suffer due to low quality, scarce export opportunities, lack of global networking and unprecedented production anomalies, due to unavailability of energy resources such as electricity and natural gas. On the other hand Pakistan’s imports are exceeding every year, if these imports contribute towards end product then it has a reversal effect on the economy because imported goods were transformed into other goods that can be sold domestically or even exported.
If that would be the case then more imports are encouraged to increase the GDP as well as exports. But here the scenario is pretty different, Pakistan’s highest imported category is unfortunately transportation equipment and machinery, plants and machinery is the category which is also acceptable because these products eventually contribute towards end products being manufactured in the country which subsequently help economy to inflate.
But a huge portion of revenue goes in foreign exchanges in importing luxury cars and other transportation equipment,
IN 2011-12, IMPORTS IN MACHINERY AND TRANSPORTATION EQUIPMENT WAS RS 699.99 BILLION WHICH SPIKED UP TO RS 1197.31 BILLION IN 2015-16
Trade deficit is increasing by every quarter. Exports are getting lesser and lesser as compared to imports.
The hottest export of Pakistan is Raw cotton, which looks in deep pain now,
IN 2011-12 RAW COTTON EXPORTS WERE 41.39 BILLION, WHICH WERE PLUNGED TO 7.95 BILLION IN 2015-16
Now you decide for yourself where are we heading to? Rich mafia in this country do not pay taxes on imports either and import cars and machinery from back doors. Recently, Punjab has proposed lifting luxury car tax because people import cars in other regions to evade taxes.
ET&NCD argues that by lifting taxes it would be easier to collect tax revenues and add it to national tax income, concluding something is better than nothing.
If this continues, on one side imports are heavily increasing and exports are being curbed on the other side, Pakistan would face severe economic issues in the next five to ten years.
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