DETEROIRATING EXPORT SECTOR
Export plays an important role in any country’s economy, influencing its level of economic growth, employment and the balance of payments.
Since 2016, Pakistan export sector is once again in a drastic situation, which has hurt the foreign reserves, and remittances of the economy. The trend of continuous fall in export has partly been compensated by declining the global oil and commodity prices that have led to 4.3% in overall import bill.
As State Bank estimates, Country’s exports dropped by 13 per cent as total exports dipped to $15.6 billion in the first nine months of the outgoing fiscal year from $17.9 billion a year ago, a drop of $2.3bn.
The falling exports are probably due to 2 factors: supply and demand. On the supply sector, higher cost of production, unskilled labor, investment, and low subsidies. And on the demand side, the major factor which is impeding the export growth slump is the preferences of the others country import.
 Due to this alarming situation of export, economy foreign reserves has been deteriorated by 4 billion $ monthly that have led to a 77% gap in total export of the economy.
The first question arises here from the government if this export situation continues for a long time. Do you think, from investing on infrastructure or the orange buses, metro bus, green belts project will boost up the economy and will it decrease the heavily indebted economy?
There is the only way to decrease the heavily indebted economy is to increase its export sector.
To improve the export of the economy, Pakistan needs to increase the level of the budget on the agriculture sector, which could only be possible if government give subsidies to farmers, and to train the farmers on the new method of techniques.