Current account deficit shrinks 29% to $12.68b

[Darth Vader]

Highee Taxes on imports wont solve much if export industry is not created.
No Pakistani gov including this one has made any actuall changes on grassroot level.

Pakistan is a big country, whos major export is agriculture and with so many projects running industrial items & oil will be big import
Problem is pakistan doesnt have exports of a 200 million people country.

Few suggestions
Build Railways provide better service connect all cities , connect most villages and towns with railway as well and for rest set up public transport system push people to use Public transport system
That will only happen when its faster cheaper and punctual.
Look for Electronic & gas coaches
2nd
Whats happening between china and US pakistan Gov can push private industry to invest in Pakistan
That will bring industries in which pakistan importing expensive items from
E.g Tech car
3rd
Banking
Make banking easier and accessible for all, make sending and receive money from abroad easier stop fake money exchangers

Build Tourism industry.
Pakistan needs major overhaul of infrastructure, visa system and how agencies spy on people is a big no no

And Charging tax on people for bringing single mobile even if they are travelling for short term is beyond crazy

 

[jamal18]

Imports r still very high

No. Exports are low.

 

[maithil]

Exports in dollar terms have actually declined by 63 millions. Wasn’t rupee depreciation supposed to increase export.

 

[The Accountant]

Exports in dollar terms have actually declined by 63 millions. Wasn’t rupee depreciation supposed to increase export.

Not in short term . Export orders and its delivery takes a mnimum of 6 months cycle provided that you have capacity to manufacture but if you dont have capacity to manufacture than it will take years. However, depreciation in rupee by 50% means an exporter will have 50% more earning as compared to its local business for example if we have earning 100 rupee from export then its Pakistani income was Rs. 10,000 at 100 rupee exchange rate but at 150 exchange rate for the same product he has an income of 15,000 rupees. If prices in local market are almost same or even if increased by 25% he still have 25% more profit from export and will have incentive to fulfill import orders first than local sales.

Keeping exchange rate lower than equilibrium price will have exactly reverse impact and that's why our manufacturer opened import houses in last 10 to 15 years rather than manufacturing units.

So exchange rate impact will take time ...

 

[countryman]

Exports in dollar terms have actually declined by 63 millions. Wasn’t rupee depreciation supposed to increase export.

You're right, it should have and it have impacted exports - exports have increased in terms of quantity however overall exports in terms of dollar remains same. It is unfortunate - this is has something to do with tariff applicable to our products in importing countries and importer's capacity to sell. Given various other factors in act right now, devaluation will decrease imports and exports but decrease in imports will be noticeable.

 

[Armchair]

There is something called the J-curve in economics, when you depreciate your currency, current account condition initially becomes worse before improving; i.e. exports decrease initially before increasing.

 

[Dark-Destroyer]

$48 Billion worth of imports for a poor country of 220 million ppl...and then ppl blame everything on govt.

And dont wanna pay taxes

 

[countryman]

There is something called the J-curve in economics, when you depreciate your currency, current account condition initially becomes worse before improving; i.e. exports decrease initially before increasing.

Yes, I understand devaluation results take little time to show up and in short run it causes panic sometime - people fear further devaluation and purchase even more than expected (without devaluation). However, several factors other than FOB price also affect exports - OP applies given current conditions and factors applicable to exports from Pakistan.

 

[Crusher]

The curse of Free Trade Agreement (FTA) between Pakistan and China is the main source of consistently increasing import bill over the years, the only way to significantly reduce Pakistan's current import bill is to come out of this POS agreement called FTA between Pakistan and China which encourages all Pakistani traders to import all kinds of products (mostly cheap junk) unrestricted, all this made in china cheap junk imports are being financed by all the loans that Pakistan has been taking from international financial institutions and friendly GCC governments.

Americans are absolutely right when they accuse Pakistani governments being busy in a never ending process of filling the insatiable stomach of Chinese by importing unrestricted from china under current FTA by using money loaned from European/American financial institutions.

 

[Sidacca]

Two of my friends have quit the smoking imported cigarettes after the very recent increase in price now they are smoking local ones.... Lolz
M loving local from day first.....

 

[VCheng]

Two of my friends have quit the smoking imported cigarettes after the very recent increase in price now they are smoking local ones.... Lolz
M loving local from day first.....

The next step would be to quit smoking altogether if prices keep on rising even for locally produced goods.

 

[B.K.N]

The next step would be to quit smoking altogether if prices keep on rising even for locally produced goods.

If they quit smoking their health would improve

 

[JohnWick]

Good improvement.....

 

[VCheng]

If they quit smoking their health would improve

A salubrious effect of environmentally friendly living. Less traffic will help too.

 

[B.K.N]

A salubrious effect of environmentally friendly living. Less traffic will help too.

Agree with you lekin yahan roz b Roz traffic bahrti ja rhi ha aur cigarettes bhi bharay huay piyay ja rhay