Pakist­an has suffer­ed an absolu­te declin­e in export­s for three years in a row since 2014-15First the etiology of the Dutch disease. In 1977, this phenomenon of a fortune turning into misfortune was labelled by The Economist magazine as Dutch disease. Even if the exchange rate regime were flexible, the increased supply of foreign exchange would drive up the nominal exchange rate and thus real exchange rate. The CPEC inflows are recent. If the assumption is that the CPEC inflows are going to be a recurrent feature for a long period, the economy has to adapt to the required structural changes.

Source: The Express Tribune December 08, 2017 04:53 UTC