Escaping low-level equilibrium trap

Economic conditions, as depicted through various statistics, have started getting better as certainty in the political environment improved in recent months, leading up to general elections in February 2024. Recent figures of exports, published by the Pakistan Bureau of Statistics (PBS), indicate an upward trend. Exports since October 2023 have surpassed the threshold of $2.5 billion every month. This is significant given that they had been hovering below this threshold for several months, especially after nearly touching $3 billion in early 2022. Pakistan’s economy has faced significant challenges, as its growth, imports as well as industrial output slowed down in 2022 and 2023. Although the recurring balance of payments crisis is the driving factor behind the continually dismal performance of the economy, the slowdown has also implications for supply chains, the availability of essential products and their prices.