Pakistan can get out of economic crisis with the help of BPO

Karachi: Pakistan can get out of economic crisis with the help of BPO.

The Pakistani rupee’s biggest drop against the dollar on Wednesday, January 25, brought back memories of the British pound sterling crisis on September 16, 1992 (Wednesday), which became known as ‘Black Wednesday’ in financial markets. goes

That day the Bank of England with all its resources could not fight the market forces to save the falling pound sterling and eventually gave up.

Similarly, when Ishaq Dar replaced outgoing finance minister Miftah Ismail, his insistence on controlling the interbank rate to bring the US dollar below the 200 rupee level did not sit well with the International Monetary Fund (IMF).

However, despite being warned, DAR continued with its unorthodox policy, resulting in dwindling remittances, restructuring of the illegal referral/handi network, development of the dollar black market and inflation due to supply chain disruptions such as The impact was seen as containers carrying imported goods got stuck at the port.

A policy of curbing imports may work in the short term but with many unintended consequences such as increased smuggling of goods through the unsecured western borders. Also, falling imports mean a drop in revenue, which now has to be raised again through the mini-budget to satisfy the IMF.

Pakistan needs dollars and stopping imports will do more harm than good. The only way forward is to increase exports in a sustainable manner and create more employment opportunities for the youth.

For Pakistan, Business Process Outsourcing (BPO) i.e. exporting services can provide a unique opportunity to bring dollars into the country in addition to improving economic growth. The country has a large number of educated youth and BPO provides these workers with an opportunity to earn valuable foreign exchange for the country as well as gain valuable experience and training in the global market.

Even local companies can reduce their operational costs using BPO and focus on their core activities. This will help them compete more effectively in the global market and increase their exports.

Now that the government is back at the table with the IMF in an attempt to stave off the risk of a temporary default, it should focus on some medium- and long-term measures in parallel to boost exports and “BP. O” can be an important source of this.

By working with the BPO industry and foreign companies, the government can help position Pakistan as a major player in the global BPO market, besides increasing exports and reducing the trade deficit. It can also help.