The economy is facing challenges with slower growth in the last fiscal year of 2022-23, which has continued into the current fiscal year, as indicated by key factors: exports, remittances, and imports. Export growth slowed to 9.5% in the first quarter of 2023-24, down from 13.3% in the same period last year, impacting the country’s foreign currency earnings.
Remittances, although many migrant workers went abroad in the previous fiscal year, dipped by 13%, in part due to a gap between official exchange rates and the kerb market. Imports, including industrial raw materials and machinery, have declined, affecting industrial production and fresh investments.
Political uncertainty, higher inflation, foreign exchange market volatility, and the Russia-Ukraine war contribute to economic woes. Experts suggest stabilizing measures and structural reforms to revitalize the economy, including exchange rate flexibility, reduced import duties, and improved trade logistics. Despite challenges, long-term solutions are needed, including diversifying exports and enhancing customs operations to curtail foreign exchange outflows and promote economic stability.
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