Despite the 14.4 percent increase in textile exports, the Rupee still hovers around 168 against the dollar. With the global economy resuming operations after coming to a halt recently, the demand for the dollar was reinstated. As such, instead of trying to change the system, our approach should be towards strengthening the value of our currency so that it can hold its own in the international arena.

Pakistan faces immense economic problems starting from Rs35.2 trillion in debt, retrieval of $36 million by foreign investor from Pakistan Investment Bonds (PIBs) and T-Bills, increasing imports and the central bank’s insistence of building up the country’s foreign currency instead of supplying dollars in the inter-bank market—all of which has put grave pressure on the rupee. Given that not much can be done about the appreciating demand for the dollar, the government can take steps that will ensure that the rupee is able to withstand the pressures being imposed on it.

Perhaps the easiest way through which damages can be mitigated is if export growth is encouraged further. For the last few years, policies that restrict imports have been substantially effective. Even during the early months of the pandemic, our exports rose by 3.15 percent. The problem lies in the fact that Pakistan exports low-value goods and imports expensive commodities like petroleum. As such, it is imperative for the government to explore the benefits that are reaped out of exporting value-added products. Otherwise, focus should be placed on pumping out larger quantities of raw materials so as to balance the trade deficit.

When countries throughout the globe are reporting declines in their output, Pakistan is still experiencing a rise in the demand for its exports. We must capitalise on such gains further so that we can move towards economic stability.