Trade deficit falls sharply by 38pc in July-August

[Dr. Strangelove]

Cutting imports impact taxes return as well since govt used to earn good amount of revenue from imports...although trade deficit going down is a good thing but exports needs to pick up the pace as well... Govt is loosing taxes revenues by resticiting imports every month

The volume of exports have have actually increased but due to the devaluation of PKR we are not seeing it clearly.

Exports in terms of Rupee have crossed 300 billion in July and April 2019.

 

[Smarana Mitra]

No. Exchange regulations mean that monies are received in PKR.

Yes,I know that. I am only saying that yhe price depends on the international market price, not just domestic price. So, if the price of basmati rice in international market is $1 (PKR 160) per kg and domestic price of basmati is PKR 120 ($0.75), the rice will still be sold in $1 per kg, not $0.75. If the amount of rice sold to earn $1 billion was 1 million tonnes (1 billion kg) when PKR was 120 per $ it will remain the same even when PKR devaluation to 160 per $.

So, there will not be any increase in export just to overcome devaluation of PKR.

Most of things we can export are expensive compared to others thus needs subsidy from govt.

That means pakistani government will save subsidy amount