Pakistan trade imbalance

Pakistan is facing an economic crisis. Our imports are higher than exports. The general perception is that this is because of CPEC but the imports from China have been stagnant for the past few years. The main reason for this crisis is actually World Trade Organization (WTO). Pakistan has been a signatory of WTO since 1995. The WTO allows easy trade across its signatory countries by offering standard tariffs, ending discriminatory policies against trade and provides dispute resolution service.
The WTO has many benefits for the population as it has allowed the import of every kind of product from around the world providing more choices to Pakistanis. But the WTO also unbalances the import/export trade of the country, pushing the country to take out loans.
Therefore, countries have to be very careful with setting their import tariffs on various products to help avoid high import of non-essential products. For example, canned Lychee, Evian Swiss bottled water, imported luxury chocolate, canned mango etc are non-essential items and should be discouraged from being imported by having high import tariffs against them. This way we will reduce our imports and also encourage processed food industries to set up factories for local production in the world’s 5th most populated country.

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