According to newspaper reports, trade deficit has crossed $18 billion in six months of the current fiscal year due to increase in imports, showing a bitter fact that depreciation of rupee has left no better impact on the national economy. The Pakistan Bureau of Statistics suggests imports remained more than 25 percent higher in rupee terms in January 2018 than the imports reported in January 2017. Despite the exports are increased by more than 17 percent in the same period, an increase in imports are also recorded, bringing the trade deficit by more than 31 percent. It is feared that the deficit will further rise in the closing months of the current fiscal year. The trade deficit was over 10 percent of the gross domestic product during the previous fiscal year. Another report compiled by the State Bank of Pakistan describes that the growth of the large-scale manufacturing rose by 5.55 percent during the first six months of the current fiscal year compared to 3.9 percent during the same period of the last year. The subsidiary industries are the backbone of the economy, but are blatantly ignored by every successive government and have been left on the mercy of several agencies.
The textile, leather and food and beverages industries are also underperforming and desperately require tax concessions. However, the automobile, electronics, steel and petroleum industries showed good performance during the first six months of the current fiscal year. Though the government is concentrating on the development of infrastructure in the country, ease of doing business laws are a basic requirement to attract foreign investment. The investor-friendly policies could ensure sustainable growth in the export sector and ultimately it will restrict an increase in the trade deficit. Besides practical steps, a new culture of economy is also need of the hour. It is hoped the government will pay special attention to create investor-friendly and business friendly environment in the country to expedite growth in the industrial sector. Cottage or subsidiary industry is performing without any government support and it can work as an engine of growth for the country’s economy. The current economic situation confirms that the depreciation of rupee value was not a good decision.
