Reasons for Economic woes

 Narrow exports base – Limited to a few items

The US is Pakistan largest exports destination. Around 17% to the US.

Despite largest, exports meagre when compared with region.
Bangladesh earned 54% more revenue from its exports to US than Pakistan.
Pak imports more agricultural products from US than it exports to it.
Pak exports in FY22 - $32bn; India’s - $680bn
per capita exports $140; India’s - $483

 Less FDI affects economy – Why Do we have less investment than China
and India? A PIDE study.

Linkage between academia and industry develops required skills: required

training to be given as in China.
Prioritize science, technology and innovation as main pillars for sustainable
growth.
Also legal cases remain undecided in country’s courts also shrink investors’
confidence.
Investors demand predictable environment; inability to enforce contracts erodes
trust.
PIP in 2023 – reducing cost and ease of doing business, mainstreaming of business
processes

 An insecure environment and worsening economy

---- PRIME - A Pakistani Think tank - highlighted link between security lapses and
economic problems.
----- First, violence beings direct economic costs. In Kenya, violence erupted in
2008, exports from affected regions dropped by 38%.

----- affects FDI, (investors like pigeons, when a government frightens them they
fly together but when policies improved, they return one by one, said by Zhu
Rongji former Chinese PM to Musharraf)

 Burgeoning External Debt – Default hanging like sword of Damocles over

economy

Study by Tabadlab - Pakistani think tank - “A raging fire: Pakistan’s debt

crisis” – Pakistan debt profile alarming while its borrowing and spending
habits unsustainable

The country’s total debt and liabilities — including domestic and external
debt — at Rs77.66 trillion, or $271.2 billion.
The continuing accumulation of debt has led to import-addicted economy
without investing in productive sectors or industry,” the report noted.

 Political stability imperative for long-term economic growth

Persistent political instability would remain a key risk to implementing reform
towards growth stabilization, restoration of confidence and sustainable debt,”
ADB report warned Sep 2023.
Less trained human capital
Agricultural