The incumbent government of Pakistan is taking every possible step to stabilise the struggling economy. The country’s deficit has been reduced by 70 percent and foreign reserves have improved.
Prime Minister Imran Khan and his team persuaded the friendly and neighbouring countries to help us, which led to better conditions than in previous periods.
In the year 2019-20, the GDP growth rate was projected to reach 1.5 percent but due to the suspension of economic activities in the country due to the coronavirus, the country’s GDP is estimated at negative 0.4 percent, which has dealt a huge blow to the economy. This setback will not be solved in a few days but Pakistan will have to formulate new strategies once again.
Since independence, our exports have reached a $25 billion target. Due to the coronavirus, our exports could be reduced to $18 or 19 billion and will still be a great achievement. The $20 billion export target now seems like a dream, but adopting positive policies, the country’s exports can be increased from Rs 25 billion to Rs 30 billion.
The government should formulate policies to increase exports and interestingly, no government’s capital is spent on exports. Rising exports will help increase aggregate demand and cause higher economic growth. Growth in exports can also have a knock-on effect on related ‘service industries’.
Pakistan is an agricultural country but unfortunately, the sector does not much importance in policymaking. The government should pay attention to the agricultural sector for the betterment of the economy. Due to the government’s inattention, agricultural production is moving in a uncertain direction.
Pakistan produces 6.5 to 7 million tonnes of rice every year, of which 4 million tons are exported. More than two million tons of rice is used domestically and the rest of the rice is smuggled. If the government increases the area under rice cultivation, it is possible to increase exports, which could benefit the government in terms of foreign exchange.
The economic deficit caused by coronavirus has a long way to go. Overseas buyers of rice and textile products have cancelled large orders, leaving exporters in huge difficulties. In such a situation, the government should abandon short-sighted policies and formulate a comprehensive strategy and provide relief to industrialists.
Before the corona epidemic in the country, 3 million people were unemployed and today 18 million people are forced to suffer from unemployment. The government should provide relief to the industrialist or else hunger, misery and unemployment will further increase.
The diplomats in Pakistani embassies around the world now need to do their part to revive the economy. Consuls in many countries are doing their job well, but in many states the role of our foreign ambassdors is secondary.
They should identify the items that are most needed in their respective countries. We can earn huge foreign exchange by exporting everything in demand abroad, including leather, pharmaceuticals, textiles, and agricultural commodities, but this requires the activation of commercial consuls.
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