Will IMf and other countries bailout packages work for Pakistan?

Because of insufficient foreign reserves Pakistan required a bailout package after every few years. Our foreign exchange largely consist of remittances around $ 23 billion from residence outside country and export around $ 21 billion, while our imports $ 48 billion mainly consist of energy / fuel and machinery. The gap between our imports & exports around of $ 12 billion and loans / markup repayments (current account deficit) main cause for wipe-out or consuming of foreign exchange reserves.

These conditions / situation force us to go for bailout package again and again and without controlling the imports and export this will continue.

To overcome the situation we required to minimize the imports and enhancing the exports and remittances, which is not looking possible in current scenario. This only achieve with the help of political / government stability and rule of law in country. We required a permanent and continuous government system in which people believe and have confidence that the system will run without any outside intervention with continuity of policies at all levels.  

Measures to control the deficit;

1.       Be Pakistani, Buy Pakistani

2.       Use population as a resource not as a burden.

3.       Enhance trade with neighbors specially IRAN and Afghanistan

4.       Make our raw materials production to value added industry

5.       Facilitate export oriented industry like China and Bangladesh.

6.       Increase the utilization of Renewable energy

7.       Reduce the imports of heavy machinery by revamping the HMC, TIP, PMTF and other industries. And make them export oriented.

8.       Recycling industry reduces the import bill and also creates jobs.

9.       Improving the services sector

Every Pakistani has to contribute only government can’t do this.