Article Type

Article

Description

According to official sources, the recent decline of Pakistani exports is due to adverse global economic conditions. Others attribute this, inter alia, to the appreciation of the Pakistani rupee. Both these factors may be partially true but defy empirical evidence as single-factor explanations. Indian exports have expanded by 62 per cent, Bangladeshi by 69pc and Sri Lankan by 21pc from 2010 to 2015. In clothing exports, Vietnam, Bangladesh and Cambodia recorded growth rates of 10pc, 6pc and 8pc respectively. Bangladesh’s nominal exchange rate has remained unchanged and the real effective exchange rate shows 54pc appreciation since FY2010-11. The rupee appreciation is visible in India too. In Pakistan, the nominal exchange rate remained stable from 2001 to 2008 and export receipts doubled. Despite a depreciation of 51pc from 2008 to 2013, there was no corresponding increase in export value.

Publication Source

Dawn

Publication Date

7-10-2017

Download

Share

COinS