our correspondent
islamabad
Increasing exports is the best method to strengthen local currency, shore up forex reserves, tackle circular debt and retire debt, a diplomat said Sunday. Pakistan is going through the most serious currency crisis in its history which is the outcome of mismanagement of the past, he said.
The manipulation of the exchange rate in the past, promotion of imports and discouraging good export policies have played havoc with the economy, said Omar Shahid Butt, Vice Consul General of Ghana. He said that presently Pakistan needs $25 billion to tackle current account deficit and debt servicing which is a challenge.
He noted that Pakistan’s exports continue to fall since the last fifteen years to touch 7.6 percent of the GDP. On the other hand exports of Luxemburg stands at 224.8 percent of the GDP, exports of Vietnam are equal to 95.4 percent of GDP, Hong Kong 188 percent, and Bahrain 88.1 percent. According to World Bank’s data, Iran’s exports are 25 percent of its GDP, Bhutan 25 percent, India 20 percent and Bangladesh exports are 15 percent of its GDP, he informed.
Omar Shahid Butt said that Pakistan’s exports are far from satisfactory as the total exports in 2018 were enough to pay 38 percent of the import bill.
He lauded the government’s efforts to document the economy and change its direction but asked the authorities to reconsider the decision to withdraw the facility of zero-rating from the export sector.
Pakistan should explore non-traditional African market for exports and Ghana will fully cooperate in this regard, he said.
