Measures for correction of adverse Balance of payment BOP

                         The following measures should be takes to correct BOP of Pakistan.

1.     Expansion of export base:

Expansion of export base is necessary for the correction of adverse balance of payment. Expansion in export will increase export of the country and as a result BOP will come to favorable position.

2.     Decrease in imports:

Decrease in imports should be brought for the correction of adverse balance of payment. Heavy custom duties should be imposed on luxury and non-essential commodities which will reduce import and will affect BOP positively.

3.     Production of quality goods at low cost:

Pakistan should produce quality goods at low cost which will increase export of the country and as a result adverse balance of payment will be corrected.

4.     Devaluation:

Devaluation is helpful for the correction of adverse BOP. It encourages exports and discourages import and ultimately balance of payment comes to favorable position.

  

5.     Production of import substitutes goods:

Those goods which we are importing should be produced domestically. The import substitute’s goods production will improve balance of payment of Pakistan.