Pakistan received $60bn against exports, remittances in FY2020-21

[hydrabadi_arab]

Minister of State for Information and Broadcasting Farrukh Habib has revealed that under the leadership of Prime Minister (PM) Imran Khan, Pakistan has received 60 billion dollars against export of goods and services and remittances, despite the pandemic.

On Tuesday, the Minister shared the graph of inflow of exports and remittances which showed that the figure is 10 billion more than the remittance recorded in 2018 which was 50 billion dollars during tenure of PML-N.

Pakistan received $60bn against export of goods, remittances: Farrukh Habib

Minister of State for Information and Broadcasting Farrukh Habib has revealed that under the leadership of Prime Minister (PM) Imran Khan, Pakistan has

nation.com.pk

 

[Mk-313]

Running a country on remittances from overseas is nothing to brag about . It’s a red flag

Domestic industry must be strengthened and must carry the weight of exports alone

 

[S.Y.A]

time to focus on IT, tourism and electronics. Set up tax free industrial zones along the coast, import machinery, overhaul it and re-export it.
Also, existing industries must be forced to earn a percentage of their revenues through exports. extensive lobbying by the govt itself is required, both inside pakistan and outside, holding one or two expo-pakistan type events isnt going to cut it.

 

[Bouncer]

time to focus on IT, tourism and electronics

I think there is no shortage of policies, Government bodies and capacity in private sector. Focus should be on governance and implementation--judiciary and FBR need a massive overhaul and clean up. Otherwise our IT companies will keep their HQs in UAE/Ireland etc and bring peanuts back to Pakistan just enough to pay staff salaries. Another front is smuggling--why would an investor bring in tens of millions $$ when he can see same smuggled products in market in all cities.

 

[S.Y.A]

FBR need a massive overhaul and clean up

Mainly FBR, they just sitting here to harass people who want to invest.

 

[RIP Pak LAW]

Running a country on remittances from overseas is nothing to brag about . It’s a red flag

Indeed. American sanctions on Pakistan are inevitable. Current US regime is making a ground to impose it. They may very well try to target Pakistani financial institutions, FATF is one example. Once sanctions are activated, remittances will have a fall as well especially coming from North America and Europe.

 

[Baby Leone]

31 billion exports and 29 billion in remittances.

 

[fitpOsitive]

Mainly FBR, they just sitting here to harass people who want to invest.

Or who are already doing their business with sharafat. Dons are however free.

 

[Mk-313]

Indeed. American sancations on Pakistan are inevitable. Current regime is making a ground to impose it. They may very well try to target Pakistani financial insituations, FATF is one example. Once sanctions are activated, remittances will have a fall as well especially coming from North America and Europe.

If you’re sanctioned then your exports, remittances all take a hit. Since you need the US treasury to settle all international transactions you cannot transact internationally (export) if the clearing house has banned you from making trade. And secondly you cannot change hands of your goods for dollars since treasury banned you

That unique power of the US treasury to settle all international transaction is what gives US the sanctioning power

 

[crankthatskunk]

Running a country on remittances from overseas is nothing to brag about . It’s a red flag

Domestic industry must be strengthened and must carry the weight of exports alone

It is far far better than having $58 billion imports against $20 billion export. Remaining $38 billion was still short by $20 Billion after $18 billion remittances.

I agree, establishment of industrial base is the way to go.
Then again, why it wasn't done in the past!!

Those crooks were more interested in trophy projects, in the words of crook SS.
In return we got train service in Lahore costing billions to run. Rapid Bus Service in Multan, not used by many.
With no policies on how the country would progress, how it would sustain itself in the tough and competitive world!! Had criminal Dar responsible to run the economy. He ran it like he is , bend and crooked.

This government is at least trying to establish some sort of industrial base, with investment in projects which would produce locally.

 

[RIP Pak LAW]

If you’re sanctioned then your exports, remittances all take a hit. Since you need the US treasury to settle all international transactions you cannot transact internationally (export) if the clearing house has banned you from making trade. And secondly you cannot change hands of your goods for dollars since treasury banned you

That unique power of the US treasury to settle all international transaction is what gives US the sanctioning power

Yes and we are on US mercy. Good thing is, current Govt of Pakistan understand this situation. FATF was the 'planned' tool to black list Pakistan for few years to cripple the economy completely but Pakistani Govt fought it with valiantly by making Pakistan compliant to all those strict rules. though they will still keep us on grey list but atleast threat of getting black listed in 2018 and early 2019 is no more. Anyways as I said earlier, they will probably find a new excuse perhaps Afghanistan now.
Pakistan way out will be increasing of our exports to China. At the moment its just $700 millions (though the number was just $200 millions in 2018). It has to cross $3-4 billions in the next 2-3 years and doubling after every couple of years. I know its easier to said than done but some how we need to increase our exports to China since it will always be sanctions free. Azerbaijan should also be a potential country to increase our exports to them by $1billion especially after our cousy relationship with them lately.

 

[Mk-313]

It is far far better than having $58 billion imports against $20 billion export. Remaining $38 billion was still short by $20 Billion after $18 billion remittances.

I agree, establishment of industrial base is the way to go.
Then again, why it wasn't done in the past!!

Those crooks were more interested in trophy projects, in the words of crook SS.
In return we got train service in Lahore costing billions to run. Rapid Bus Service in Multan, not used by many.
With no policies on how the country would progress, how it would sustain itself in the tough and competitive world!! Had criminal Dar responsible to run the economy. He ran it like he is , bend and crooked.

This government is at least trying to establish some sort of industrial base, with investment in projects which would produce locally.

Pakistan is in a catch 22. It needs all the project from BRI to build export-competitive infrastructure. The problem is your paying for the BRI in dollars but the infrastructure is not ready yet to start export industry and see returns on those projects .

2- you have a 100 million+ labor pool that can’t be mobilized. And the smart people who can put that labor to good often immigrate to the US for a better life. So the few bright individual that do the job to putting the labor to good use gets even less

3- your main import which is understandable are petroleum, machinery etc. but what doesn’t make sense is to import agriculture & food. Domestic industry can pick up that slick easily

 

[Mk-313]

Yes and we are on US mercy. Good thing is, current Govt of Pakistan understand this situation. FATF was the 'planned' tool to black list Pakistan for few years to cripple the economy completely but Pakistani Govt fought it with valiantly by making Pakistan compliant to all those strict rules. though they will still keep us on grey list but atleast threat of getting black listed in 2018 and early 2019 is no more. Anyways as I said earlier, they will probably find a new excuse perhaps Afghanistan now.
Pakistan way out will be increasing of our exports to China. At the moment its just $700 millions (though the number was just $200 millions in 2018). It has to cross $3-4 billions in the next 2-3 years and doubling after every couple of years. I know its easier to said than done but some how we need to increase our exports to China since it will always be sanctions free. Azerbaijan should also be a potential country to increase our exports to them by $1billion especially after our cousy relationship with them lately.

I don’t think you grasp the sanctions part completely. Reliance on China will only mitigate the effects pertinent to China. Let’s say you start exporting $5-$10 billion to China . And now you have $5-$10 billion worth of yuan in hand. But now you have to buy machinery from the west, petrol from the Middle East textile from Japan etc etc. they’re gona ask for dollars as their payment which you won’t have . And the US treasury just blocked you from xchanging those yuan for the dollars. And then somehow even if you get dollars the treasury won’t clear those transactions

Those yuans would only be good to trade back with China and vice versa. So until all your imports needs can be fulfilled by China the efffvts of sanctions will still remain

 

[RIP Pak LAW]

I don’t think you grasp the sanctions part completely. Reliance on China will only mitigate the effects pertinent to China. Let’s say you start exporting $5-$10 billion to China . And now you have $5-$10 billion worth of yuan in hand. But now you have to buy machinery from the west, petrol from the Middle East textile from Japan etc etc. they’re gona ask for dollars as their payment which you won’t have . And the US treasury just blocked you from xchanging those yuan for the dollars. And then somehow even if you get dollars the treasury won’t clear those transactions

Those yuans would only be good to trade back with China and vice versa. So until all your imports needs can be fulfilled by China the efffvts of sanctions will still remain

We won't be geting Iran/North Korea style sanctions where trading with any country will be a big no no. What US Govt may do is to squeeze Pakistani export market in US and EU. Just like Bangladesh has been prefered over Pakistan in EU for the last decade or so. Heck they once even banned Pakistani sports goods by using 'child labor' clause. Anyways things will start unfolding in the next few months. As of now, we are playing smart without giving US much excuses.

 

[Mk-313]

We won't be geting Iran/North Korea style sanctions where trading with any country will be a big no no. What US Govt may do is to squeeze Pakistani export market in US and EU. Just like Bangladesh has been prefered over Pakistan in EU for the last decade or so. Heck they once even banned Pakistani sports goods by using 'child labor' clause. Anyways things will start unfolding in the next few months. As of now, we are playing smart without giving US much excuses.

ahhh... that makes sense