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Policy risks eat into export revenue

Shielding exporters from year-to-year tax changes can help stave off losses

Sharam Haq

Pakistan is losing hundreds of millions of dollars in export revenue every month, not because of foreign tariff wars or global trade conflicts, but because of the uncertainty generated by its own policymaking machinery, according to a new study released by economists Azam Chaudhry and Gul Andaman of the Lahore School of Economics (LSE).


The headline finding is striking. When the United States and China fought a bruising tariff war in 2018 and 2019, an episode that reshuffled global supply chains and rattled exporters worldwide, Pakistan's trade policy uncertainty index peaked at 185, against a baseline of 100. But Pakistan's own Finance Act of 2024, a routine annual budget law, pushed that same index to 348, nearly twice the level recorded during the biggest trade conflict in a generation. By 2025, the index had reached three and a half times its historical mean.
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posted by S A J Shirazi @ 6/16/2026 09:29:00 AM,

Exports stagnant despite rupee fall

Lahore School of Economics study urges shift from price-based fixes to innovation, high-income markets

Shahram Haq

For years, Pakistan has relied on traditional levers like currency depreciation and energy subsidies to stimulate exports. Yet despite multiple rounds of rupee devaluation, the country's export earnings have largely stagnated.


According to an empirical analysis by the Lahore School of Economics, it is not price adjustments but innovation, diversification, and access to high-income markets that truly drive export growth.

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posted by S A J Shirazi @ 11/16/2025 01:50:00 PM,

Factors that Impact Pakistan's Exports: An Empirical Analysis

Rethinking Pakistan’s Exports

Dr. Azam Amjad Chaudhry, Professor and Dean, Faculty of Economics, Lahore School of Economics, WTO Chair for Pakistan

Dr. Gul Andaman, Teaching and Research Fellow, Innovation and Technology Center, Lahore School of Economics

Despite multiple currency depreciations, exports have barely grown. Research by Dr. Azam Amjad Chaudhry (Professor & Dean, Faculty of Economics, WTO Chair for Pakistan) and Dr. Gul Andaman (Teaching & Research Fellow, Innovation and Technology Center, Lahore School of Economics) shows that it’s not prices but diversification, innovation, and global demand that truly drive export growth. To move forward, Pakistan must build capabilities, add value, and expand into high-tech, complex products — not just rely on exchange rates.

Read Lahore School, Innovation and Technology Center, Policy Note No. 2/25 here

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posted by S A J Shirazi @ 11/15/2025 04:14:00 PM,

Sample of firms: Survey reveals guarded optimism

Pakistan’s years of suffering through a crippling economy seem to be coming to an end and all that is needed now are strong policies that benefit the country in the short as well as long run, stated a survey.

A recent business confidence survey conducted by the Lahore School of Economics and the Lahore Chamber of Commerce and Industry (LCCI) covered a variety of firms across three sectors – manufacturing, services and retail – and found that these companies had grown over the last year in terms of sales, investment, size and technology.

In general, the sample firms expressed optimism, anticipated higher growth, and have invested in innovation which points towards renewed economic growth in these sectors.

Also here

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posted by S A J Shirazi @ 9/08/2016 02:07:00 PM,

Readymade garment exports should be govt’s focus

Developing countries have sought to promote exports as a growth strategy since the area source of both higher demand and of coveted foreign exchange. Proponents of trade liberalization argue that there is a positive relationship between openness of economy and productivity of its firms.


However, the mechanism through which this works is by the introduction of imports which reduce the markups that the firms charge from consumers due to greater competition which in turn lowers the average cost of production due to the exit of low-productivity firms. In Pakistan, exporting firms use more imported inputs, are more productive and capital intensive and have higher growth potential reveals recent research conducted by the Lahore School of Economics.
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posted by S A J Shirazi @ 9/03/2016 02:59:00 PM,

What Went Wrong With the Mango Crop?

Mango is an important foreign currency earning fruit crop. Over 20 million metric tons of mangoes are grown through the tropical and sub-tropical world. India is the largest producer with Mexico and China competing for the second place, followed by Pakistan and Indonesia. In Pakistan, mango occupies the second position after citrus fruits in terms of area and production. But the output this year has been substantially low at 9-10 tons/ha, considerably less than the potential 20 tons/ha yield. Read the article by Sohaib Shahid, Lahore School BSc student - here.

 

Previous by Sohaib Shahid: Sugar shortage: a game well played by profiteers

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posted by S A J Shirazi @ 8/10/2006 09:00:00 PM,

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