Explaining why the country can't service its debt, Mr Forson said that in order to assess if a country will be able to pay its debt or not, there are four main thresholds, including the present value of debt to GDP ratio and the present value of debt to
export ratio.
They said the country's
export ratio is 10 per cent and import 95 per cent.
He said the
export ratio of Pakistan to Afghanistan is around 95 percent while only few items constituting around five percent are imported from Afghanistan to Pakistan.
In column (II), the control variables of
Export ratio and Age both have statistically significant positive coefficient estimates, as expected.
A country like Pakistan where Import to
Export ratio is tilted in favour of former and which faces diminishing foreign reserves, it is criminal for the State to let illegal trade occur which benefits our arch enemy India, which would not allow even a single Pakistan made item to be sold openly in their country.
Kabil explained that although the
export ratio did not exceed 2.5% of the annual production of fish, an increase in the exports of tilapia and mullet was witnessed, which are the population's main alternative to meat and poultry.
Its
export ratio has now reached a record of 90% of sales, with Europe and North America as solid performers, and the Middle East and South American markets doing particularly well.
External debt to
export ratio has reached 300 percent compared to 120 percent of India and 100 percent of Bangladesh.
While many major OECD countries are pursuing economic growth through the expansion of exports, the ratio of exports to GDP (
export ratio) for Japan is low and the growth in the ratio is also low.
TABLE 1 Unit Root Test Results Trade Share Import Ratio
Export Ratio Brazil 3.21 3.87 3.93 Chile 2.81 3.86 3.62 China 3.61 3.73 3.88 Colombia 2.96 2.80 2.91 Czech Rep.
In this context, it would be worthwhile to analyze whether or not the current gap of $3.3 billion (before an equal
export ratio is achieved) can be bridged by exports made by SMEs with fewer than 250 employees, or only by big business.