Focus on improving productivity

My previous article, titled “Need for export-oriented strategies”, highlighted the low level of exports as a percentage of GDP in Pakistan and the importance of improving global and regional integration. Pakistani producers must become more productive to achieve sustainable growth in exports. This will help address the external account challenges and escape from the vicious cycle involving a balance of payments crisis every few years. Exports as a percentage of GDP were approximately 10% in 2020, according to the World Development Indicators, published by the World Bank. It was lower in 2017, at 8.3%. Unfortunately, Pakistan’s exports-to-GDP ratio is one of the worst in the world. However, the recent uptick in exports is encouraging. Exports in January 2022 were at $2.62 billion, according to the Pakistan Bureau of Statistics, which was 22.1% more than the value reported in January 2021. Exports in the first seven months (Jul-Jan) of FY22, at $17.7 billion, were 24.5% more than the value reported in the same period of previous fiscal year.