Secretary General (Federal) of the Businessmen Panel (BMP) and Former Chairman FPCCI Standing Committee Horticulture Exports, Ahmad Jawad has said after posting 49 months of back-to-back current account deficits, Pakistan's economy suddenly posted a surplus.
The stock market rose by over 8,000 points in the last few weeks. One billion dollars of hot money poured into the country and it is a yellow sign of confidence in the stabilization of the economy and yet green sign is ahead.
"If we can keep our deficits to a minimum, it will transform the very nature of our economy and boom and bust cycles."
Speaking in a seminar on economic transformation, he viewed exports have risen by 9.6 percent in November but the average increase in last five months is only 4.8 percent.
This increase would not sustain this economy. We reached US$25 billion export volume in 2013 and 6 years later we might touch the same figure if they continue to grow at present pace.
Ideally we should have been at US$35 billion level by now if we look at the average increase in exports by other regional countries and after massive devaluation of rupee.
"However we are rejoicing the first current account surplus without any significant increase in exports".
That means the major chunk of saved foreign exchange came from compressed exports.
Compressed exports also include less import of raw materials consumed by our industries. "We have unfortunately not started producing those raw materials locally but the compression is due to subdued local demand".
"We cannot come out of deep waters until we take steps to boost exports and in this regard renewal of GSP plus status is imperative," Jawad added.
He said Pakistan had earned and benefited US$ 15 billion from Generalized System of Preference (GSP) Plus facility since 2013-14, granted by the European Union (EU)
Through GSP Plus facility Pakistan's exports to European countries had increased at a ratio of US$3 billion per year while in the Euro Zone Pakistan's exports have witnessed 51 percent increase.
He said Pakistan was the only country which had established "GSP Plus treaty implementation cell" at federal and provincial levels to resolve concerns to human rights and labour related issues.
He condemned that India was hatching organized conspiracies against renewal of the GSP Plus facility to Pakistan.
He questioned that India which was the biggest violator of human rights in Indian occupied Kashmir for the last 105 days was pointing the finger at Pakistan.
Copyright Business Recorder, 2019
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