Exports play an important role in the economic growth of the country. Realising its significance in employment and balance of payment, Pakistan is committed to developing an export-oriented economy. A rise in export sales produces revenue and profit for business activities, bringing a rise in capital investment spending. Currently, Pakistan’s exports have shown an upward trend by achieving a growth of 25% in the first nine months of the current fiscal year and reaching $23.3 billion from $18.6 billion. Growing spending promotes a country’s productive capacity, increasing the potential for export.
According to the World Bank Report, Pakistan’s economy recovered in the Fiscal Year 2021 due to the government’s effective policies. These effective policies have become key to strengthening the economy and recovering from the economic fallout associated with COVID-19. As a result, country’s real GDP growth has rebounded to 3.5 per cent in FY2021 after decreasing by 0.5 per cent in FY2020 with the inception of the global pandemic. Additionally, inflation eased, the fiscal deficit enhanced to 7.3 per cent of GDP, and the current account deficit shrunk to 0.6 per cent of GDP, the lowest in a decade.
However, the government should further boost exports to achieve a structurally strong export sector. More investment should be made in export industries like textiles, food, IT and IT-enabled services to export at a high rate.
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