As Pakistan aims to double its exports, data proves otherwise
Jul 18, 2024
Islamabad [Pakistan], July 18 : Pakistan's Commerce Ministry is intending to double its exports to USD 60 billion within the next three years, however, the data does not showcase any such growth prospects in the country, Dawn reported.
In the current situation, Pakistan will have to increase its sales, abroad by 25 to 30 per cent to double its exports within the intended time span.
Pakistan aims to entail major investments in the fields of industry and agriculture to boost its production. However, there is no evidence which suggests that it will happen any time soon, the report added.
It added that a 'stagnant export graph' has always been a problem for Pakistan's economy for decades.
Exports have repeatedly marked a minimalistic rise in their value, and this has been a major challenge for Pakistan's substantial economic growth. The exporters of the country blame high fuel prices, fluctuating global demand and domestic policy shifts for poor economic performance, Dawn reported.
An earlier report by Dawn, mentioned that the Pakistani government faces substantial financial challenges as it navigates through economic uncertainties and inflationary pressures.
"The government's borrowings in the first 11 months of the outgoing fiscal year have exceeded the combined figure of the two preceding fiscal years," revealed economic data, emphasising the magnitude of financial commitments.
This hefty borrowing, amounting to PKR 7.39 trillion from July 2023 to June 7, 2024, surpasses the government's collective borrowings of PKR 7.16 trillion in the previous two fiscal years (FY23 and FY22). Bankers speculate that total borrowings for FY24 could reach PKR 8 trillion by June 30, driven by high spending necessitated by slashed development budgets in favour of meeting other expenses.
"The government would spend PKR 7.21 trillion on domestic debt servicing and an additional PKR 1.04 trillion on foreign debt servicing, taking the total to PKR 8.25 trillion," according to the budget document for FY2023-24.
This figure is set to rise further in FY25, with allocations totalling PKR 9.77 trillion for debt servicing alone, the Dawn report had then claimed.
