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Economic agenda

Thursday, Feb 29, 2024

This letter refers to the article ‘The viability of de-dollarization’ (TNS, January 28, 2024) by Muhammad Umar Ayaz and Salman Danish. The article noted that in 2022, Pakistan’s imports stood at a staggering $80 billion whilst our exports were a mere $31 billion. The piece also mentions that although Pakistan is exploring various options to curtail its dependence on the US dollar, complete de-dollarization would be unattainable for Pakistan, at least in the short-to-medium term. I would advise the government to go for partial de-dollarization in the near-term and to beef up all our forex holdings, so that, in the long run, we are able to bid farewell to the IMF and its harsh prescriptions.

Meanwhile, the policies to compress imports must remain for another two years. The imports of costly vehicles as well as fashionable items (foreign foods, branded-wear, pet food, etc) should be strongly regulated as these are a drain on our forex holdings. However, investment must be encouraged, which can propel our output and exports.

Abbas R Siddiqi

Lahore