DOES any such initiative exist in our country, or is it a figment of my imagination?
asserted
it → exist → imagination
One wonders about the presence of one and the strange absence of the other.
asserted
One → wonder → other
Exports are stagnating, and remittances are rising.
asserted
remittances → stagnate → ?
Are exports falling because of unwise policies or despite them?
asserted
exports → fall → them
Are remittances rising because of good policy initiatives or despite them?
asserted
remittances → rise → them
The point here is not to denigrate the remittances initiative or its continually renewed push, but to emphasise that exports should be given greater policy priority than remittances — because, in some growth-promoting way, exports matter far more than remittances.
asserted
exports → denigrate → remittances
Here we explore the reasons.
asserted
we → explore → reasons
This article focuses on increasing exports, not reducing remittances.
asserted
article → focus → remittances
In fact, remittances should continue to be promoted.
asserted
remittances → continue → fact
Both exports and remittances matter to our economy.
asserted
exports → matter → economy
Both help contain the current account deficit.
asserted
Both → help → deficit
Exports are driven by agricultural, industrial, and services output — sectors that already provide a direct impetus to employment in the country.
asserted
that → drive → country
This impetus also has an indirect impact on the economy through spending by household members employed in export industries.
asserted
impetus → have → industries
Remittances follow increased output in foreign countries that employ Pakistani workers and pay them abroad.
asserted
that → follow → them
Part of their overseas earnings/ savings is sent home to their families.
asserted
Part → send → families
The economic impact of remittances is indirect and arises from spending by remittance-receiving families.
asserted
impact → arise → families
Hence, both help fill the gap in the current account, but the growth impact of exports is both direct and indirect, while it is only indirect for remittances.
asserted
it → help → remittances
Another, far more crucial point is that increasing exports to raise the economy’s productivity is paramount for growth.
asserted
increasing → increase → growth
This is not true for rising remittances in Pakistan, although it is theoretically possible if a larger proportion of remittances goes towards export production.
asserted
proportion → rise → production
Our policymakers seem to have forgotten the importance of exports.
asserted
policymakers → seem → exports
A policy to increase exports is more likely to raise productivity than a policy to increase remittances.
asserted
policy → increase → remittances
Increased productivity can fuel long-term sustainable growth.
asserted
productivity → increase → growth
Exporting exposes domestic firms to international competition, better management practices, international quality standards, global supply chains, and new technologies.
asserted
Exporting → expose → competition
There is considerable empirical evidence that exporters tend to be more productive and that export expansion can generate productivity gains.
asserted
expansion → be → gains
For example, the World Bank reports that a 10 per cent increase in exports across its cross-country sample was associated with higher employment, earnings, and productivity.
asserted
increase → report → employment
Another point to note is that exports are always preceded by the actual rise in production and employment (direct impact), as well as the indirect impact through consumption made possible by spending of wages by export-related employees.
asserted
exports → note → employees
Contrast this with remittances, whose economic impact is not only indirect but also follows the receipt of remittances.
asserted
impact → contrast → remittances
This means that prioritising sustained export growth would create more employment in the country and reduce the desperation of unemployed people pushed abroad to find jobs, even at the risk of their lives.
asserted
prioritising → mean → lives
At the same time, increasing exports would have boosted the productivity our economy so badly needs.
asserted
economy → increase → productivity
This is why remittances should not be seen as a substitute for exports.
asserted
remittances → see → exports
Exports should be promoted with more vigour than remittances.
asserted
Exports → promote → remittances
In terms of promoting growth, exports matter far more than remittances.
asserted
exports → promote → remittances
Our analysts tend to blame high unemployment almost entirely on high population growth.
asserted
analysts → tend → growth
The fact is that our unwise economic policies are at the root of frequent economic crises that cause growth and productivity to decline.
asserted
growth → cause → crises
The resulting rise in joblessness leads to greater migration abroad, which, in turn, drives remittances up.
asserted
which → result → remittances
Of course, Pakistan’s remittance initiative has helped.
asserted
initiative → help → ?
But if we had implemented prudent policies that avoided various crises, exports as a proportion of GDP would have risen much faster than remittances.
asserted
exports → implement → remittances
The export-to-GDP ratio peaked at 17.3pc in 1992 (according to World Bank data).
uncertain
ratio → peak → data
It went down to only 10pc of GDP in 2025.
asserted
It → go → 2025
Every onslaught of a balance-of-payments crisis precipitated a large decline.
asserted
onslaught → precipitate → decline
…and 14 more, not listed.
The Aporia
