What is the balance of payment constraint in Pakistan?

The balance of payment constraint in Pakistan refers to the country's ability to manage its imports and exports in a manner that enables it to maintain a sustainable and favorable balance of payments. Pakistan is a net importer of goods, and this puts pressure on its foreign reserves. To address the balance of payment constraint, the government has adopted various measures, including devaluing the currency, increasing exports, and imposing restrictions on imports. The current balance of payment situation in Pakistan is challenging, and the country's policymakers will need to take decisive action if they hope to overcome the constraint and achieve sustainable economic growth.

This mind map was published on 21 June 2023 and has been viewed 64 times.