KARACHI, External imbalance was caused by a variety of problems due to a high level of dependence on imports and a declining export sector.At a roundtable discussion held at the Karachi School of Business and Leadership as part of the Islamabad Policy Research Institute’s Grand National Dialogue on the state of the economy in Pakistan,
According to a news release, this was the third instalment of a conversation titled “External Imbalances of Pakistan.
Causes, Consequences and Remedies” that was intended to address the severity and impact of Pakistan’s external economic imbalances on its population.A prestigious panel of experts debated how the economy was spiralling out of control as a result of rising gasoline prices, declining exports, and a startling decline in remittances.
The goal of the brainstorming session was to pinpoint the causes of Pakistan’s trade deficit, obstacles to attracting FDIs, and last but not least strategies for dealing with the country’s ballooning current account deficit.Additionally, a sincere attempt was made to consider how to address the trade imbalances on economic growth, including a weakening rupee against the dollar.
A weak export structure, defined by relatively low value-added commodities, was cited as the cause of this downturn.
Additionally, it was observed that rising import costs have put pressure on the government’s budget and investors’ faith in the economy.
The participants in the discussion included Dr. S Akbar Zaidi, Executive Director of IBA Karachi, Hussain Dawood, Chairman of Engro Corporation, Drs. Aqdas Afzal and Safia Minhaj, professors at Habib University Karachi and the University of Karachi, respectively. Dr. Amir Hussain Saddique, Research Economist at AERC; Dr. Aadil Nakhoda, Professor at IBA Karachi; MoinForeign direct investments (FDIs), according to IPRI envoy Dr. Raza Muhammad, might be crucial in reducing the current account deficit.
He stated that increased FDI inflows were one factor contributing to the economic success of the Asian Tigers and added that a business-friendly climate should be used to encourage both domestic and international investment.
