Economic Crisis In Pakistan,In balance of payment, low export rates, current amount deficient,
poor structure of tax collection nothing is new for Pakistan. In 2019 Pakistan is facing a dire macroeconomic crisis. Pakistan is spending more on imports than exports which is creating in balance of payment,
the current deficient has increased. The major driver of increase current amount deficient is an expanding trade deficient due to the large number of imports under CEPEC and low exports in general. Despite the massive depreciation in rupee the exports of Pakistan remain same.
The inflation rate is now touching 9.4 percent which is record level high over last five years mostly due to the depreciation of the rupee. Moreover the expense of defense budget and fight against terrorism puts a burden on the economy. The foreign investments are not available for Pakistan due to security and political challenges which hits its foreign exchange reserves.
Poor tax structure also hits the economy. Pakistan tax revenue was 13 percent of its GDP. With domestic in ruins Pakistan has not been able to rely on consistent foreign investment for more than stopgap measure. To make significant development in economy of country Pakistan needs to assure the friendly environment for foreign direct investment instead of relying on foreign aid.
It should appreciate the domestic investment through flexible tax policies. Such measures would re position Pakistan on international stages as competitive ground for foreign investment. Pakistan needs to focus on building the domestic industry to increase the export rate and to enhance its competitiveness in international market.
If Pakistan wants to tackle with the current crisis in long run than the government should take substantial steps to improve the macroeconomic conditions of the country and to modernize the industrial sector of the country to become competitive in international markets, Please Like and Suggest (Pakistan Zinda Baad Pakistan Paynda Baad)