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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,

Is there a future for export-led growth in Pakistan?

Dr Azam Amjad Chaudhry

(The writer is the dean of the faculty of economics at the Lahore School of Economics and the WTO chair for Pakistan)


Pakistan is again in the midst of an economic crisis. The core issues of a balance of payments crisis, a halt in economic growth, soaring prices, increasing employment and rising poverty are interlinked and require fundamental reforms. However, the immediate problem is simple: Pakistan needs to export more and has financed growth over the last few decades with foreign borrowing, which must now be paid back. What should be just as simple is the answer: Pakistan is experiencing an export crisis and urgently needs a coherent policy to boost exports.

The continuous balance of payments problem in Pakistan can be described as a problem of balance of payments constrained growth, which means that whenever Pakistan grows at more than 4% per annum, we import so much more than we export that we run out of foreign exchange reserves. In many economies, this imbalance is made up through remittances or foreign investment. In the case of Pakistan, the former has stagnated and the latter is nonexistent. So, the only solution is to increase exports with a coherent export-based industrial strategy.

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posted by S A J Shirazi @ 5/20/2024 12:15:00 PM,

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