Featured Economy Continues its Upward Trajectory as Trade Deficit Shrinks by 22%

[PradoTLC]

i think we export cheap sh1t . we need to rethink about our future exports . many asian companies alone export more then our country .

that will be a long process.. quality schooling and education is the answer. the bottom line is we dont make things from a value added chain perspective the world wants to buy

in the short run we can increase are agricultural exports, together with clothing, leather, light manufactured goods, furniture, cement , sporting goods, surgical equipment and so on

 

[FuturePAF]

i think we export cheap sh1t . we need to rethink about our future exports . many asian companies alone export more then our country .

This is the time to buy undervalued global brands, with solid patents and a distribution network upon which we can build up our local production and export to a ready made market through the foreign company. Obviously intially In fields we already produce products, but if successful branch out into other industries.

Tata did it with UK based Tetley.

Also this should not be restricted to physical exports but cultural and electronic (products and services) exports

 

[Mav3rick]

What I miserably fail to understand, from the posts in this thread, is why so many here advocate for a free market economy conversion system, what are the benefits of such a system when I can list many major disadvantages starting with loan repayments and so on. Today, Pakistan is on average 60%-100% more expensive that it was in 2017/18 and the single biggest responsibility lies on the exchange rate which is NOT in our favour at all; our external debt today is over 17000 Billion Rupees whereas the same external debt could have been 12,000 Billion Rupees if only the USD was at 110.

Further, it is good to give credit where it is due when blame is awarded the same way; Karachi saw progress during Musharraf regime and people place all praises at the feet of Mustafa Kamal but when they want to blame something, they blame Altaf Hussain. This cherry picking is neither fair nor correct. Similarly, CPEC project was born during Musharraf regime, PPP worked on it and most of it got implemented under PML, perhaps all because of the Military & Chinese interests. We started facing power shortages under Musharraf, by the time PPP handed over power to PML we were in a dire situation and PPP's short sighted, corrupt and kickback minting schemes of IPP's such as the Turkish Power Plants on Ship etc., cost us an arm and a leg but failed to produce electricity. PML invested heavily in electricity generation, be it because of pressure of the Army or Chinese or whatever, today all the surplus electricity that we have is because of the projects that were initiated by the PML Government.

In my opinion, going forward we should offer free land and tax free period of 25-50 years to multi-nationals who invest USD 10 Billion or more in Pakistan in the next 5 years. The FDI they bring in along with thousands of jobs, cheaper locally manufactured goods along with ability to export would be the foundation that we need to be where we want to be in 15-20 years. And we can continue to build on that.

 

[Enigma SIG]

Nawaz Sharif gave such subsidies to the poor. He froze electricity bills. Gave billions of Rs in subsidies to sugar and wheat mafias. He froze dollar to 100 Rs for 4 years so that inflation wouldn't hurt poor people. These policies to save the poor nearly bankrupted Pakistan, you idiot.

This whole system of subsidies should end; or toned down. It only makes people learn to be beggars. I had socialist inclinations like everyone when I was young. Growing old however makes you learn hard realities of life.

I took my car out of a public parking when I was going back home yesterday and the guy who takes the parking fee stood outside waiting for me to give him some money. I didn't, while his accomplice a few steps away snickered "ennay nai denay". I was like "tu meri tankhwa te lagga ae BC'oda?".

This is what people have relegated themselves to in our country. Begging and begging. No innovation, no thinking, just eat subsidies, TC higher ups, import and import and then cry foul when prices go up due to inflation.

 

[ziaulislam]

What I miserably fail to understand, from the posts in this thread, is why so many here advocate for a free market economy conversion system, what are the benefits of such a system when I can list many major disadvantages starting with loan repayments and so on. Today, Pakistan is on average 60%-100% more expensive that it was in 2017/18 and the single biggest responsibility lies on the exchange rate which is NOT in our favour at all; our external debt today is over 17000 Billion Rupees whereas the same external debt could have been 12,000 Billion Rupees if only the USD was at 110.

Further, it is good to give credit where it is due when blame is awarded the same way; Karachi saw progress during Musharraf regime and people place all praises at the feet of Mustafa Kamal but when they want to blame something, they blame Altaf Hussain. This cherry picking is neither fair nor correct. Similarly, CPEC project was born during Musharraf regime, PPP worked on it and most of it got implemented under PML, perhaps all because of the Military & Chinese interests. We started facing power shortages under Musharraf, by the time PPP handed over power to PML we were in a dire situation and PPP's short sighted, corrupt and kickback minting schemes of IPP's such as the Turkish Power Plants on Ship etc., cost us an arm and a leg but failed to produce electricity. PML invested heavily in electricity generation, be it because of pressure of the Army or Chinese or whatever, today all the surplus electricity that we have is because of the projects that were initiated by the PML Government.

In my opinion, going forward we should offer free land and tax free period of 25-50 years to multi-nationals who invest USD 10 Billion or more in Pakistan in the next 5 years. The FDI they bring in along with thousands of jobs, cheaper locally manufactured goods along with ability to export would be the foundation that we need to be where we want to be in 15-20 years. And we can continue to build on that.

surplus ka achar dalna hey?
the power surplus is now another issue with no transmission capacity and power being too expensive to begin with! now keep paying capacity charges!!!

 

[Enigma SIG]

surplus ka achar dalna hey?
the power surplus is now another issue with no transmission capacity and power being too expensive to begin with! now keep paying capacity charges!!!

I think the off-peak hours for industry addresses the capacity charge issue. Industry will have incentive to keep running longer on half the cost, while the excess capacity will get used up (not all of it of course).

 

[Mav3rick]

surplus ka achar dalna hey?
the power surplus is now another issue with no transmission capacity and power being too expensive to begin with! now keep paying capacity charges!!!

When USD goes up so does the cost of imported Oil, Machinery, Transport etc., this is why I started my post with the points which go against free market exchange rate as opposed to manipulated exchange rate.

I believe transmission capacity exists where EEZ are being sanctioned and promoted. It is in those zones that the Government should offer tax free incentives for the next few decades conditional upon FDI of certain threshold, local recruitment and training of resources, technology transfer over the next few decades and exports.

 

[Mechatron]

Well! PKR is also growing stronger as compared to USD and other currencies as well, which is a good sign for our economy.

 

[Patriot forever]

I think the off-peak hours for industry addresses the capacity charge issue. Industry will have incentive to keep running longer on half the cost, while the excess capacity will get used up (not all of it of course).

Yes it is an exceptionally good idea. Such out of box ideas is what we really need at this moment in dealing with power crisis.
Transmission has been one of the key areas in which this government has focused on.
It will benefit both the government and industries. The more the industries run, the more their cost per unit production comes down. They can easily offset their initial higher cost due to higher power tariff by running longer.

Don't see this in isolation. Combine it with the capital in term of loans that is being offered to industries at 2-3% that too over a ten year period for expansion and the attractive exchange rate (room in the local market to expand due to more expensive imported substitutes as well as favourable export).
Our industries have never been promoted so much.