The Government of Pakistan has revealed the budget for the fiscal year 2021-22. An overview of the budget shows that it is likely to facilitate growth, focusing on increasing expenditure.
The Economic Survey of Pakistan for the year 2020-21 shows that the country experienced a nosedive in its exports in the initial months of the previous fiscal year. The decline in its exports was due to the subsequent lockdowns imposed during the pandemic. With some industries closed, the export sector observed a massive slump which hurt Pakistan’s balance of trade.
Things turned around for the better when lockdowns were lifted and the government of Pakistan adopted prudent policies. The government’s incentives for the construction sector helped the economy in providing jobs and much-needed growth.
The exports of goods increased by 2.3% to 18.7 billion dollars in comparison to 18.3 billion last year. Although the import of goods has also increased, the government plans to maintain this growth of exports through the use of sustainable policy measures.
The government aims to provide incentives to export-oriented sectors in the recently announced budget, especially in the Services and Information Technology (IT) sector.
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