Export Earnings Instability in Pakistan (original) (raw)

The Pakistan Development Review

Since independence, Pakistan, like many other countries, has been facing the problem of the balance-of-payments deficit. A number of policies have been introduced during different periods for rapid and continuous growth in Pakistan’s exports. These policies, like import substitution, devaluation of the rupee in 1972, export finance schemes, tax concessions, delinking of the rupee from the U.S. dollar in 1982, etc., have helped in boosting its exports to some extent but not enough to stabilise its export earnings. The fluctuations in export earnings are known to have serious consequences. Specifically, unstable export earnings affect the investment decisions by hindering the continuous import of industrial raw materials. This, in turn, impedes the growth of the industrial sector. Moreover, it causes fluctuations in the GNP and promotes uncertainty in the economy. This uncertainty plays a decisive role in the private sector’s hesitation to invest in the large-scale manufacturing indus...

Sign up for access to the world's latest research.

checkGet notified about relevant papers

checkSave papers to use in your research

checkJoin the discussion with peers

checkTrack your impact