The IMF official based in Islamabad has explained how country can realize its true export potential. According to Esther Perez Ruiz, Pakistan needs proactive policies – exchange rate flexibility, efficient allocation of resources, elimination of untargeted subsidies and creating a conducive business environment in the country to realize the export potential.
That Pakistan’s potential export is more than three times the current level. According to the World Bank, for example, it is estimated that Pakistan’s potential annual exports are at $88.1 billion. Achieving this target will be a herculean task for any government. Let’s do the first part of this task by setting a target of $40 billion, which must be raised incrementally every year. In my view, $40 billion target is quite achievable. It is about time the government took IMF official’s suggestions seriously. Nothing can help us achieve economic turnaround unless we strive to realise country’s true potential of exports and Foreign Direct Investment (FDI).
Noman Tanoli (Karachi)
Copyright Business Recorder, 2022
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