The need for policy repairs beyond tariffs |
The tariff reforms are designed to hopefully boost our industrial competitiveness and allow manufacturers to become part of global supply chains by giving them greater access to raw materials and semi-finished goods. The reforms are expected to boost exports by $5 billion once the adjustments are phased in, starting with the next budget.
The need to boost domestic commodity production for exports as well as local needs is imperative to manage a stable balance of payments.
According to the latest International Monetary Fund report, nearly $17bn were available in the shape of new loans and rollovers to meet Pakistan’s gross external financing needs of $19.2bn; for the $2.4bn gap, the country was securing commitments from foreign creditors. The $19.2bn financing includes $1.5bn for the current account deficit and the remaining for repaying the foreign debt, says the report.
However, the report observes that some of the traditional funding sources are either drying up or will not be available. The World Bank had stopped Pakistan’s budget financing, according to The Express Tribune, a few months ago. And there are uncertain risks from US tariff policies.
The country’s economy is expected to grow by 2.68pc in the current fiscal year — a revision from the earlier projected 3.6pc
Imports of goods during the nine-month period rose........