Fragile economy

This refers to the news report, ‘Stagnant exports, increased imports to weaken rupee’ (July 24). According to the statistics released by the State Bank for the fiscal year 2014-15, exports have plummeted to $23.8 billion while imports have jumped to $45.9 billion despite a fall in the oil import bill. Our exports are thus covering only 52 percent of the imports – this should set off alarm bells in the corridors of power. The trade gap has swelled to $22.1 billion indicating the narrowness of our production base on the one hand and the extent of our dependence on external sources to meet our consumption needs for goods on the other.
We need to expand the production base and provide all sorts of fiscal incentives to boost exports. Bangladesh’s exports are nearly $35 billion and are growing each year because of sound economic policies. There is no reason why this performance cannot be matched by us. There is also an urgent need to curtail unnecessary imports that are destroying our industries and encouraging an opulent lifestyle. Import substitution should be given top priority. Unless remedial measures are taken quickly, the country’s fragile economy, which is already under stress, will be in deep trouble in the near future. We should engage experts to manage the economy.
Arif Majeed
Karachi