How Pakistan Can Increase Its Export? Ft. Gonzalo Varela | 163 | TBT
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- Опубліковано 29 чер 2024
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Exploring reviving economy with imports and exports with the senior economist of World Bank, Gonzalo Varela. How did he end up being a senior economist for the world bank? What is the difference between the real exchange rate and the one we see? What is the world bank’s latest report on Pakistan’s imports? In the last decade, what’s going on with the exchange rate in Pakistan? Why it is important to have import and export parody? Tune in to know more on how to increase Pakistan’s exports and what are some of the export opportunities for Pakistan!
#thoughtbehindthings #muzamilhasan #worldbank
00:00 Tonight’s guest: Gonzalo Varela
00:31 How did he end up being a senior economist for the world bank?
02:39 What’s the real exchange rate mean?
05:13 World banks report on Pakistan’s imports
13:31 What’s going on with the Exchange rate in Pakistan in the last decade?
24:25 Why is it important for imports and exports to have parody?
29:00 Why Pakistan hasn’t been able to increase its exports?
39:19 Are we seeing the investments going into exports?
45:06 What are some of the export opportunities for Pakistan?
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Pakistan’s Development Report by World Bank: thedocs.worldbank.org/en/doc/...
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The economics lecture everyone deserves 🙌
even Muzamil bhai looked surprised :p
@@mab1 Really Insightful indeed.
Very Insightful
Yes I'm studying economics and he's actually very accurate !
@Hamza Shabbir kashif Saeed bhi acha ha yaar
Now thats a podcast, an hour in and I still wants more. The kind of knowledge and rationality Varela has is just awesome. We need more people like him in this country. You can trace out a huge amount of pakistans problem just from the simple things he mentioned. Hopefully we can get more from him.
This is exactly why Pakistan needs a robust immigration programme. Despite being such a populous country I feel we've stagnated in terms of our thinking and our abilities to innovate.
There's a reason why every western country despite being right learning always have an immigration programme of some sorts.
Love u for ur love to pakistan
But these genius people are labelled as foreign agents and undercover agents in Pakistan and are not trusted by the "institutions" and "show runners" and we can see the results of this security centric hysterical policy depicted in the current situation and stature of the country
Wallah I was skeptic and thought I won't learn anything new in this podcast but this guy was remarkable to listen to in few areas. Particularly when he talked about Pakistani exporters being small and global buyer being big and having power over them.
I've been watching TBT podcasts for months but this episode was the one where I was compelled to subscribe to the channel and it was an amazing informative episode.
His explanation is really, really good. I'm not a student of Economics or Business but still understood everything very well. Thank you Muzamil for this informative podcast.
One of the best podcasts on the economics of Pakistan
Ur podcasts are particularly informative as well as mindful
Thank you so much for doing justice with your show by not just inviting celebs and trendsetters but also people like Gonzalo Varelo
Would love to see more podcasts on social and economic issues.
Keep up the good work👍🏻
Supporting Pakistan to be a Knowledge Society
While talking about exchange rates he meant the PMLN govt kept the dollar at an appreciated rate but couldn't say it cz that would be political which is against his job description.I hope this depreciation of rupee results in such a fast growth in our exports that we are soon able to bring the exchange rate down by natural means and the inflation decreases🙏🏻
Seems like you learned nothing from the podcast and heard only what you wanted to hear.
The exports should be of higher value and imports should be of lower value. Artificial growth decreases the exports value.
The export should be higher exchange rate and there should be foreign direct investment that can reduce the trade deficit.
Amazing video. Its so surprise to see this kind of brilliant videos from Pakistani youtubers 👏👏👏
Great podcast. An economics lecture is always welcome! Thanks for sharing
Very interesting topic really love it
Every line precise and to the point.
Ended too soon.
Brother You are going great. Thanks for making this Knowledge available to us. TbT is great. ❤️
Great 👌
This was certainly a very very insightful podcast. Loved it honestly. Please invite him again and if possible, we want to give you a few questions to ask him in next podcast.
I don’t know who are these people who can dislike this kind of video
enjoyed this one
These podcasts are so addictive 🔥🔥
As always fabulous podcast waiting for your podcast regarding mdcat and nle
What’s Faboild ? Sorry to have to say this but Mdcat and NLE are conducted by PMC which in my eyes doesnt have that much of a reputation so no representative can be seen on podcasts in the near future … maybe some where down the line
They can only call on people/students who are gonna take the test sooner or later and we sort of have an idea how that podcast is gonna go :D
Very insightful. Thankyou!
I learned so much about import tariff and it's impact on export. Very insightful podcast.
Bro you are doing great job. your podcasts are really amazing informative and really helpful for young generation. I am a big fan of your work and it's my hobby to watch your podcasts. Today is my off and i spent my whole day to watch your podcasts and still not tired😊👌👏
Fridous ashiq awan ki press conference ki jaga ye episode chalao national TV pe 😒
Sahi bola bhai
Amazing podcast, I didn't have the exports and economic knowledge as much before as seen from this one. Thank you so much for this podcast
Why am I getting this huge knowledge for free????Going to be your patreon...
Such an amazing episode.
We have other options and broader aspect to see than usual one.
If you can have guests recommend their favorite books . I think a lot of your subscribers will appreciate it .
Loved this podcast.
A goldmine for Economics students.
Great Podcast👍
Very nicely explained some economy concepts by Mr Varela, loved the vlog.
A paper based currency not backed by tangible goods such as gold, but linked to dollars rate is a sham economy. There should be a single global currency which is linked with precious metals to have a lesser volatile and more stable economy. China is doing the same and benefitting in short and long term.
In the current scenario, the imports need be balanced but not decreased, quality manufacturing and exports need to be increased, and the local salaries must be adjusted against inflation by default to have a balanced economy, but all that is possible when manufacturers and exporters pay their taxes and do not launder money abroad.
How the other nations have been able to succeed with the same paper currency and dollar? We have to stop making up excuses and trying to find a Scape goat.
@@zaf7794 they are all suffering and falling into recession including the US. We need to take some lessons from the current economies of the world, such as china, who is saving capital in gold, not dollars.
Thanks for this very informative generic discussion. It highlights very well, the important variables that impact the volume of exports.
An exporter needs, for the products that one deals in, focused and specific guidance and analytical IT tools for increasing exporters’ turnover and profitability.
Dynamic market intelligence, financial models for calculating export prices, etc. can be of help for the exporters.
For the export of software, there is an independent board. Similar models can be there for selected other products.
For the promotion of the current export products, TDAP is working. Metrics for its effectiveness should be in place for continuous evaluation and a system for candy and stick.
TDAP research for the identification of potential new export products and new destinations is also required.
For industries that produce export items, an increase in export volume enhances their capacity utilization, and thus reduces their cost of production, and competitiveness in the export market.
TDAP can target guide the industries that utilize lowly their capacity to operate in export markets.
Very insightful -keep up the good work!
Best economist in Pakistan rightnow
Best economics explaination on the case of Pakistan
Please call him again muzzammil bhai
I thought about many of the economic problems that you mentioned before I moved from the UK to Pakistan to set-up my export-only business. I'm very appreciative of your confirmations regarding the export/import policies and especially the shortcomings of the public sector in facilitating imports of machinery etc. Furthermore, I would like to add that it is common for skilled and un-skilled labour to move abroad to places like the Middle East but its not appealing for Overseas Pakistanis to move to Pakistan with their hard-earned money and successfully invest it here. There is absolutely no support by the government in facilitating anything for Overseas investors like me. The whole system is riddled with flaws and corruption. Its easier to just pray to Allah and conduct all your research and struggles yourself. I have noticed that everyone demands imported goods here like i-phones but do not understand its impact on the trade deficit. In my locality, the producers servicing the local industry think I'm crazy!
Much change is actually needed in educating the Business community in Pakistan and some political reforms are desperately needed. In my opinion the biggest change needed is 'A shift in Attitudes towards International Trade'
I really enjoyed your podcast. Please help Pakistan as best you can Sir! Thanks
4th generation British Pakistani
Bro is ne to mujhe Alevel economics ka topic smjha diya❤️😂😂
Great podcast - definitely sharing it with my econ students 👍🏻
Kha ap mdcat or NLE sy related baat Kary gy wo podcast Kab upload ho GA.. Anxiously waiting for that podcast
THE BEST PODCAST ALOT OF KNOWLEDGE ABSORBED THANKS!! alot TBT
Very appreciable and informative podcast ✨✨ best wishes ✌️✌️
Aslamoalikum Brother Great Job Learn Every Day Thanks a lot ❤️
Appreciated learning orientated session ❣️❣️
Now how the fuck did muzamil manage to get freakin Gonzalo Varela in his podcast
😂 Fookin incredible
Great work 👌 very informative podcast , knowledge .we need this type of content on Maine stream Media unfortunately It's not available there, They are still on a traditionally path and just spreading negativity with higher budget 😌
But hope like this TBT team and other people being part of making bright future of Pakistan God bless them 💚
37:14
So producers aren't interested in increasing efficiency. They don't innovate to decrease cost and compete against other international players as they have no reason to do so
I think they'll get a reason to innovate when import tariffs are low for consumer goods so they can have competition but then we'd have an import bill to pay in dollars. We'll have to figure out a balance point for these things to work.
@@hamzashabbir3589 protectionists policies don't work in long run. Eventually local entrepreneurs have to be innovative. REER at 100 already helping more domestic production. P&G investment in Pakistan for production of consumer goods for Pakistani market is one example. Under Dar, REER at 120 destroyed local production capacity.
Example of protectionists policies is our agriculture sector equipment manufacturing. Another example is our fertilizer industry. Seths are earning billion on subsidized gas. Car industry is also part of protected industry. But I think they need some protection because we never had any reasonable auto policy. Now they are competing with each other and producing more quality products.
Brilliant podcast...keep up the good work 👍
Note to the editor / camera person: Please make sure the face of both persons appear in the same place in frame. And also both faces should be of same size.
In this video podcast, Guest's face is in center and Muzammil's face is towards right side of the frame. When the camera cuts towards Muzammil, it's not a good experience for the viewer. Just my 2 cents. 🙂
Bump
Brilliant informative podcast.
woww, hello im from indonesia 🇮🇩
zabardast video janaab!!
Brilliant Podcast ❤️❤️❤️
Great Podcast, Thanks Muzamil bhai and please invite someone who has knowledge and information regarding NFT'S
I think this podcast is more informative than all the TV anchor's Shows. 👍 Great work
"Interesting question"
this is a treat to watch and listen to. Muzammil bring on more intellectuals like him on your podcast and discuss our national issues. Who knows somehow our economist might somehow get some idea of how to lift this country up and so that people will start to trust the markets instead of the words of stupid politicians.
Awesome video
Muzammil bhai you are bringing the most insightful content for the youth of Pakistan.....Keep it up....👍
Really good insider information podcast here about how trade is done in terms of economics
I am an economist in UK, I did a presentation on the Trade deficit of Pakistan in early 2018, I showed the reasons of deficit and told them PKR will do a nosedive, people did not like it. They asked me, "do you think we are stupid?".
Who was your audience in that presentation and did you delivered that in Pakistan?
The simple reason could be lack of education, this is evident in Pakistan where highly educated people working under our unaware politicians who would straight away refuse anything logical to maintain status quo.
Finally economy
Better listening to this podcast than to take economics class
Really how come, could you explain further?
Why Pakistan hasn't been able to export part is worth every second. Like I never thought like that.
BUT, as the depreciated currency negatively affects imports, wouldn't it affect exporters also to import raw materials for their exports? It is kind of a double edged sword !
How can exports be cheaper if they import expensive raw material for their exports?
It depends. Its a tight rope you have to walk. There is no black and white policy and what people like Imran khan did was make this tight rope into a sword. You have be on either side.
Depriciated currency makes imports expansive, which means higher inflation but at the same time results into fastest growth. But thats not possible for any democracy as people will start crying and you will be out in next election. Thats why I dont know any country except Vietnam and China (neither of them are democracy) who depreciated their currency.
just FYI - Pakistan, contrary to popular belief, hasnt depriciated its currency. Its now based on market which means neither overvalues nor under. Earlier it was overvalued which not only destroy exports and local industry, but also not sustainable for more than 3-4 years.
Bring your therapist friend again! i think his name was ali, he was such an intellectual and amazing views on certain things
He is presenting official view of world bank.....we need a neutral economist to tell how to build capicity i.e SEZ,STZ etc
❣❣
Summary of Podcast.
*Import Duties Reduce Export*
Higher Import Tax, lower competition for local producer. Even, exporter can sell their goods in domestic market above the international market price (IM price + import tax) , because foreign producer can't compete him at international price in domestic market
So, producers will shift their goods to local consumers only resulting decrease in export.
*Depreciating exchange rate increases export.*
Foreign direct investment is shifted to export producing firms. Similarly, exporters are encouraged as their revenues (In PKR) increases, but costs don't increase by the same proportion. So overall, their profits increases which incentivize them to enhance exports.
On the other hand, imports reduce because local consumers have to pay higher price (in PKR)
*Why Pakistan's exports fall swiftly when exchange rates appreciates, but increase sluggishly when dollar becomes more expensive.*
1. Exporters lack market intelligence to sell differentiated goods. They don't know much about their target audience and how to approach them.
2. Their market share is very low in international market. (Avg Pakistani export firm sells 1.4 Million USD, while that for Bangladesh is 3.8 Million USD). They have less bargaining power. When exchange rates fall, a proportion of their profit is earned by their foreign buyers.
3. Pakistani firms lack capital and investment to update their Technology for producing higher quantity of goods to export. (because FDI is focused more on consumption portion of GDP due to import tarrifs)
*3 ways to enhance exports in Pakistan
1. Modify Your production technology. Make less Carbon footprint to avoid environmental taxes (soon to be charged) in the developed countries.
Advertise and Certify Exports for greater reach in international market.
2. Enhance High intelligence services export. It includes software designing, Architecture and other high paying skills to export in international markets
3. International Free Trade Agreements.
By Gonzalo Varela - A senior Economist leading Trade Program in Pakistan.
The content creaters should create their own tv channel.
Sir our biggest import is oil and i dont understand why our gov is not using ethanol blended fuel to save their foreign reserves keeping in mind that brazil and america is using it and we also once went toward this technology but then backed up for some fishy reasons
Ethanol blend price competitiveness vary with crude oil price variations. Right now oil is $85, so ethanol is competitive. US and Brazil case is very different. Brazil has a advantage. They can produce ethanol from sugar at very low price. In US case, US corn production per acre is far better than Pakistan. Pakistan can and should blend ethanol
1. Govt must encourage ethanol blend by eliminating all taxes on ethanol
2. Govt should work on increasing per acre corn output which is increasing anyway, but little bit of serious investment in seed technology will change things
@@mythbusterUSA comprehensive 👏🏼👏🏼
Excelent bro but i have read that pakistan produces ethanol that is enough for its domestic consumption which is exported at a very cheep rate so i think for the time being that should be used to at least achieve E10 which is acceptable by all manufacturers
@@shahriyarahmad4770 yes Pakistan produce ethanol which is by product of sugar industry. Govt should enforce % blend mandatory like India did 7.2% mix mandatory.
Plz invite raza pirbhai CEO KFC Pakistan
Do a podcast with Hassan raheem
here
$ UP
Affect:
Exporters :)
Importers :(
Please invite some contemporary pakistani writer and talk about writing as a profession in pakistan.
pakistan is the worst performer in LPI (logistic performance indicator).LPI performance matters alot for healthy imports.pakistan need to develop its backward linkages with the global production networks.basically import to export.for example korea and singapore have 70 to 80% foreign content in their exports because of dynamic or healthy imports.to be a good exporter you need to be a good importer first.trade is becoming more about trade in tasks rather trade in goods.pakistan has a great potential to increase its service exports due to the presence of higher supply of educated labor force
Hello frends
How to increase your exports ? Simply by offering what foreign customers want…. But Pakistanis are really shortsighted.
The answer: impossible
Muzamil, my sincere advice to you please don't be youthiya and don't buy whatever Imran has sold to the nation.
You have huge potential so don't waste your self proving this government right.
Yes you could have your opinion but when using public platforms either title your self youthiya or stay neutral.
What exactly he said that made you draw that conclusion? Nawaz Sharif was an idiot and that's a fact.
I think you don't have the capacity to comprehend the assessment this gentleman from World Bank made of Pakistan's economy. He clearly said keeping exchange rate fixed was absolutely foolish.
@@thinkspot8879 fixing dollar rate has both pros and cons but it depends on kind of economic model counties have.
Do you know since when Pakistan managing/fixing the dollar rate ? And why you named only Nawaz and why Muzamil questions were focused on last 10 years ?
Why selective assessments?
By doing so the exports value will decrease and import value will increase.
@@kashifmehmood1285 do you think 10 years is a less time to fix the policies and set the economy in the right direction to progress?
Pakistan should mend it's way ... only India can save Pakistan from collapsing under its own weight ... Without good relation with India pakistan would eventually become bankrupt ... Country would disintegrate ... Taliban and TLP kind of elements would become powrrful with decline of economy of pakistan as State would not able to provide welfare to the citizens and pakistani would have disenchanment with the idea of pakistan ... Sooner it is , better it would be to mend pakistani foreign policy which is impacting its domestic and economic problems ...
Why Indians who have no clue about anything, just write random stuff? Like internet is so cheap in India, that every kumar bumar is online now.
@@stangerdanger7252 Wadera Mullah military Nexus is not only corrupting Pakistan but also dangerous for Indian sub continent stability...
@@stangerdanger7252 Yes Internet is cheap Here in India ... 2 gb mobile data per day for 7 rs a day for 84 days 600 rs pack and Optical fiber Wifi Unlimited with 3 to 5 mb per second speed for 700 rs a month .... optical fiber wifi 250 gb per month with 3 to 5 mb per second speed for 500 rs a month ... Every Khan marassi qureshi sayeed pasmanda muslim and non muslims having internet access here !!
@@khushveersingh3297 RAM Mandir politics is the reason, why Indians are most hungry and unhappy people. What happened during Hathras case of dalit. No example is seen like that but of-course India.
@@khushveersingh3297 You are also quite low quality. Normally I won't talk to someone who is from Slums of India in real life, or slums in general, But here we are connected with such groups all of a sudden. Like poverty and illiteracy got online.