Efforts have been made from time to time in the past but despite all incentives and measures such as price mechanism adjustments, subsidies, rebates, exchange rate adjustments and devaluation, Pakistan has not been able to boost its exports to address its unfavorable balance of trade. During the last 70 years, Pakistan has only twice had a favourable trade balance - once in 1950s during the Korean War and then in 1973 due to the oil boom.
While the cheapening rupee will make Indian products more attractive in the export market, it also will drive up the cost of imports in a country that already has an unfavorable balance of trade. Estimates are that in 2011-12, India will run a trade deficit of about $150 billion!
The Sudanese leader said that losing oil as a major source of revenue has led to a budget deficit and an unfavorable balance of trade which he said put the government in the dilemma of needing to raise new revenues without having to raise taxes.