MEASURES TO CORRECT THE BALANCE OF PAYMENT

MEASURES TO CORRECT THE BALANCE OF PAYMENT


PROPER UTILIZATION OF RESOURCES :
The less developed countries like pakistan should utilize their natural resources properly. It will increase the production and exports of the country.

INCREASE IN LABOUR INTENSIVE INDUSTRIES :
Pakistan should prefer the labour intensive industries. Because labour is cheap as compared to the machinery. It can reduce the import of machines and can reduce the cost of production. The demand of cheap goods can increase.

INCREASE IN SMALL SCALE INDUSTRIES :
We should increase the small scale industries like Korea, Taiwan and Hong king. We can increase our production and export with small capital. We can increase the export of sport and carpets. Pakistan can nut afford to import the heavy machinery.

CHANGE IN THE EXPORT PATTERN :
Since independence we are exporting raw material and few primary goods. Now if we want to correct our balance of payment we shall have to increase the exports of manufactured goods.

DECREASE IN THE IMPORTS :
The consumption goods may not be imported and people should use the local manufactured goods. People shall have to be motivated to use Pakistani goods.

IMPROVEMENT IN QUALITY :
We should improve the quality of the product to capture the world market by attracting the quality of the product.

REDUCE THE COST :
For increasing exports it is necessary the we should reduce the cost of production. Because in the competition lower price attract the other countries.

JOINT PROJECTS :
We can increase the industries with the help of foreign investors. It will be useful for increasing the exports.

REDUCTION IN EXPORT DUTIES :
The government should reduce the export duties and should provide incentives to the exporters. It will increase the exports. Credit and licence facility should be provided to exporters.

REVISION IN IMPORT & EXPORT POLICY :
The government should frame such type of import and export policy that if encourage the exports and discourage the imports.