Table of Contents

A Critical Look at the Economic Survey of Pakistan

1. What Is the Economic Survey?

The Economic Survey of Pakistan is a yearly report released just before the federal budget. It tells us how the economy did over the past financial year, covering agriculture, industry, services, trade, energy, inflation, education, health, taxes, and government finances.

The government naturally likes to show the good news. A critical analysis looks beyond that to the weak spots and the problems that remain.

In this year’s survey, the government claimed the economy had stabilized, but it missed several key targets. It aimed for 5% GDP growth and reached about 4.24%. Agriculture and industry both fell short. Inflation dropped mainly because world oil prices fell, not because of lasting reforms.

2. Highlights: What the Government Said Went Well

Economic growth

GDP grew by 4.24%, the highest since 2008-09. The government pointed to:

A more stable economy
Recovery in the services sector
Better investor confidence
Fewer sudden economic shocks

Claimed achievements

Lower inflation. Inflation (CPI) fell to 4.8%, the lowest in about 11 years.

Better tax collection. The government said tax administration and revenue collection had improved.

Smaller fiscal deficit. The government cut the gap between income and spending through austerity (spending cuts) and outside financing.

Record remittances. Money sent home by overseas Pakistanis hit record levels and helped the country’s foreign currency reserves.

Sukuk bonds. The successful launch of Islamic Sukuk bonds was presented as good financial management.

Higher foreign reserves and a strong stock market. Reserves rose because of foreign loans, grants, remittances, and a lower oil import bill.

Energy

The government pointed to new power projects, better energy infrastructure, and plans to produce more electricity, all as steps toward ending the energy crisis.

3. Critical Analysis: The Problems Behind the Numbers

a. Growth targets were missed

The government wanted 5% growth and got 4.24%. The causes:

Weak industrial growth
Poor farm output
Energy shortages
Low investment

This shows a gap between what the government claimed and what actually happened.

b. Too much dependence on outside help

Reserves went up mostly because of foreign loans, IMF support, grants, and remittances. These are not signs of a stronger domestic economy that produces and exports more.

c. A missed chance with cheap oil

Oil prices fell sharply, which could have been used to:

Lower energy costs
Boost industry
Increase exports

The government did not make full use of this opportunity.

d. Slower than the neighbors

Many South Asian economies grew 6-7% a year, while Pakistan stayed around 4%. India and Bangladesh did noticeably better in both growth and exports.

e. Long-standing structural weaknesses

Low productivity
Weak industry
Limited exports
A poor tax culture
Circular debt (unpaid bills piling up between power companies, suppliers, and the government)
Political instability

4. Inflation: Lowest in 11 Years, But Why?

Inflation fell from about 8.6% to 4.8%.

Reasons for the fall:

Cheaper oil. Global oil prices dropped by nearly half, which lowered transport costs, energy prices, and import costs.
Tighter monetary policy. The State Bank used higher interest rates and a smaller money supply to cool prices.

Critical view: Most of the drop came from outside factors and is likely temporary. It was not the result of long-term reforms.

5. GDP Growth

Growth improved slightly but still fell short of expectations. The problems were missed targets, weak industry, low exports, the energy crisis, and political uncertainty.

At this level, growth is not enough to reduce poverty, create enough jobs, or compete with other countries in the region.

6. Tax-to-GDP Ratio: Among the Lowest in the World

The tax-to-GDP ratio was reported at about 7.5%, down from about 10.2% the year before. This shows how little of the economy’s output the government collects as tax.

Why collection is weak:

Narrow tax base. Very few people pay tax.
Tax evasion. Weak enforcement makes avoiding tax easy.
Informal economy. A large part of the economy is undocumented and untaxed.
Political resistance. Powerful groups often block real tax reform.

Results: A bigger fiscal deficit, more borrowing, and a heavier debt burden.

7. Health

Government spending on health was only about 0.42% of GDP. The problems:

Weak healthcare infrastructure
Too few hospitals
A shortage of doctors
A healthcare crisis in rural areas

Pakistan still lags behind international health standards.

8. Education

Falling literacy. The survey showed literacy indicators getting worse.

Low spending. Education spending stayed around 2% of GDP, even though the government had promised to raise it to 4%.

Consequences:

Low human development
Unemployment
A poorly skilled workforce
Weak research capacity

9. Development Spending (PSDP)

The Public Sector Development Programme was criticized because:

Projects were spread unevenly
Punjab received more projects than other provinces
Smaller provinces complained about unfair resource allocation

This raised doubts about fairness and balanced development across regions.

10. Agriculture

	Growth
Target	3.3%
Actual	2.9%

Reasons for the shortfall:

Water shortages
The energy crisis
Outdated technology
Climate change
Falling crop yields

Because agriculture employs a large share of the population, weak growth hurts rural livelihoods.

11. Services Sector

Services did better than other sectors, growing 4.95%, and contributed a lot to overall GDP growth. Major parts include banking, telecommunications, transport, and trade.

12. Industry

	Growth
Industrial growth target	6.8%
Actual industrial growth	3.62%
Large-scale manufacturing (LSM)	2.38%

Reasons for weak performance:

Energy shortages
High production costs
Low exports
Security concerns
Limited investment

13. Debt Servicing

About 44.5% of government revenue went to paying off debt. That leaves less money for education, health, infrastructure, and social welfare, and it shows how dependent the country has become on borrowing.

14. Major Challenges at a Glance

Economic: Low exports, fiscal deficit, circular debt, weak tax collection, high public debt, trade imbalance

Social: Poverty, unemployment, illiteracy, poor healthcare

Structural: Political instability, weak governance, corruption, energy crisis

15. Recommendations

Broaden the tax base. Document the economy, reform agricultural taxation, and crack down on evasion.
Promote industry. Cut energy costs, support exporters, and encourage investment.
Spend more on education and health. Make human development a national priority.
Improve governance. Transparency and accountability are essential for lasting growth.
Reform agriculture. Provide modern irrigation, better technology, and support for farmers.
Reduce dependence on loans. Strengthen local production and exports.

16. Conclusion

The Economic Survey showed real progress in stability, inflation, remittances, and reserves. But a closer look reveals deep problems: weak industry, poor tax collection, low spending on health and education, heavy debt, and reliance on foreign money.

Short-term numbers can look good, but lasting progress needs deeper change in taxes, governance, industry, agriculture, education, and energy. Pakistan’s future depends on strong institutions and investment in its people, not just on one year’s statistics.

A few of these figures, such as the tax-to-GDP drop from 10.2% to 7.5%, should be checked against the original survey before you submit this. If you want, I can also give it back in WordPress block format so you can paste it straight into your editor.

A Critical Look at Pakistan’s Previous and Current Budgets (2014-15 vs 2015-16)

1. What Is a Budget?

A budget is a yearly financial plan. It estimates how much money the government expects to earn (revenue) and how much it plans to spend (expenditure) in a financial year. It also shows the government’s priorities and the direction it wants the economy to take.

People usually ask whether a budget is:

Friendly to ordinary people
Friendly to businesses
Focused on development
Or tilted toward the wealthy while loading taxes on everyone else

A good budget should:

Promote economic growth
Reduce inflation and unemployment
Improve public welfare
Share resources fairly
Keep government finances under control

The current budget includes some welfare measures, development funding, and energy initiatives. Critics argue, however, that it still puts a heavy load on the middle and lower classes through indirect taxes and rising utility costs.

2. Where the Government Spends: Current Expenditure

Total current expenditure rose only slightly:

Year	Current Expenditure
2014-15 (previous)	Rs. 3,463 billion
2015-16 (current)	Rs. 3,482 billion

Main components of spending

Item	Amount
Civil pensions	Rs. 56 billion
Military pensions	Rs. 174 billion
Subsidies	Rs. 137 billion
Non-salary expenditure of civil government	Rs. 129 billion
Civil government allowances	Rs. 120 billion
Civil government salaries	Rs. 73 billion

Military pensions are far higher than civil pensions, which reflects how much weight Pakistan gives to security.

3. Where the Money Comes From: Current Revenue

Total revenue: Rs. 4,089 billion

Source	Amount
Direct taxes	Rs. 1.347 trillion
Indirect taxes	Rs. 1.755 trillion
Foreign grants	Rs. 40 billion
State Bank profit	Rs. 280 billion
Property and enterprise income	Rs. 227.6 billion
Royalty	Rs. 40 billion

Direct vs indirect taxes: Direct taxes are paid on income and profit. Indirect taxes, like sales tax, are added to the price of goods and services. Pakistan relies more on indirect taxes, which is criticized because they hit poorer people harder. A shopkeeper and a millionaire pay the same sales tax on a bar of soap, but it takes a much bigger bite out of the shopkeeper’s income.

4. The View of the Common Citizen

Ordinary people judge a budget by what touches daily life:

Taxes
Salaries
Inflation
Utility bills
Fuel prices
Job opportunities

5. Tax on Mobile Phones

The budget placed heavy taxes on mobile phones and telecom services, which raised costs for ordinary users. Critics said that:

Communication is now a necessity, not a luxury
Heavy taxes discourage people from getting online and joining the digital economy

6. Capital Gains Tax (CGT)

Capital gains tax is charged on profit made from selling shares and investments. The budget raised it:

Holding period before sale	2014-15	2015-16
More than two years	0%	7.5%
One to two years	10%	12.5%
Within one year	12.5%	15%

Critical view: The increase discouraged investors and shook shareholder confidence.

7. Oil and Gas Revenue

Year	Oil and Gas Revenue
2014-15	Rs. 405 billion
2015-16	Rs. 382 billion

The drop was mainly due to falling international oil prices.

8. Minimum Wage

The minimum wage rose from Rs. 12,000 to Rs. 13,000. Critics said inflation ate up much of the real benefit, so workers did not gain as much as the increase suggests.

9. Relief for Lower-Income Salaried People

For people earning between Rs. 400,000 and Rs. 500,000 (a year), the salary tax was cut from 5% to 2%. This was seen as a relief for salaried workers.

10. Electricity Subsidies

Year	Electricity Subsidies
2014-15	Rs. 203.24 billion
2015-16	Rs. 137.6 billion

Implication: With less government support, electricity became more expensive for both households and industries.

11. Increase in Development Spending (PSDP)

The Public Sector Development Programme funds government projects like roads, dams, and power plants.

Year	PSDP
2014-15	Rs. 525 billion
2015-16	Rs. 700 billion

This shows the government’s focus on infrastructure and development.

12. What the Government Said in Its Defense

The government pointed to several positives:

a. More resources available

2015-16: Rs. 4,163.3 billion
2014-15: Rs. 4,073.8 billion

b. Higher net revenue receipts. They grew by about 10.7%.

c. Larger share for the provinces. Under the NFC Award (the formula for sharing federal money with the provinces), provinces received Rs. 1,849 billion.

d. Higher external receipts. They grew by about 12.1%. Critics warned, though, that depending more on foreign money makes the country more vulnerable to debt problems.

13. Sector-Wise Analysis (Rs. in millions)

Sector	2014-15	2015-16	Change
Public order and safety	87,598	94,899	Up
Agriculture	26,623	23,497	Down
Fuel and energy	960	769	Down
Mining	1,276	1,403	Up
Construction and transport	12,353	11,854	Down
Environment protection	935	1,055	Up
Health	10,124	11,010	Up
Education	64,519	75,580	Up

Key points

Public order and safety: The increase reflects the focus on counterterrorism and security.
Agriculture: The cut was criticized because agriculture supports a large share of Pakistan’s population.
Education: Spending went up, but analysts say it is still too low compared to international standards.

14. Overall Assessment

Positives

Higher development spending (PSDP)
Tax relief for lower-income salaried people
A small rise in the minimum wage
More money for education, health, and provinces

Negatives

Heavy reliance on indirect taxes
Higher capital gains tax
Reduced electricity subsidies
Less funding for agriculture
Heavy taxes on mobile phones
Growing dependence on external financing

15. Conclusion

The budget contains some useful measures, especially higher development spending and relief for low-income salaried workers. But it still depends heavily on indirect taxes, cuts support in key areas like agriculture and electricity, and raises taxes on investors. A truly balanced budget would widen the tax base, protect ordinary citizens from the burden of indirect taxes, and put more into agriculture, health, and education.

I kept your figures exactly as given, but it is worth double-checking them against the official budget documents before submitting. Also, the budget in this write-up is the 2015-16 one, which is a different year from the Economic Survey you shared earlier, so avoid mixing numbers between the two in the same assignment. I can turn this into WordPress block format too if you want.

14. Critical Analysis of the Budget

a. Decline in Inflation

Inflation fell to about 4.8%, compared with about 8% the year before. The government presented this as a success, since lower inflation means prices are rising more slowly for ordinary people.

The critical view: Much of the fall came from global oil prices dropping, not from domestic reforms. Oil prices are outside the government’s control, so if they rise again, inflation can climb with them. Lasting low inflation would need reforms such as higher productivity, stronger industry, and a better tax system.

b. Slight Reduction in Unemployment

Unemployment reportedly fell by a small amount. But the picture is less positive than it sounds:

Not enough new jobs were created
Youth unemployment continued
Informal employment grew (jobs with no contracts, no security, and no benefits)

c. Focus on Energy Projects

The budget gave priority to:

Hydropower
Energy infrastructure
Power generation projects

This was seen as positive for long-term industrial growth, because factories need reliable and affordable electricity.

d. Interest-Free Loans for Solar Tubewells

The government supported agriculture through solar-powered tubewells and interest-free financing. This could lower energy costs for farmers, since they would no longer depend on expensive diesel or grid electricity to pump water.

e. Increased Development Spending

Higher PSDP allocations (from Rs. 525 billion to Rs. 700 billion) showed a focus on:

Roads
Infrastructure
Transport
Other development projects

f. Weaknesses of the Budget

Major criticisms:

Heavy indirect taxation
Rising utility costs
Reduced subsidies
Limited agricultural support
Dependence on external borrowing
Insufficient spending on social welfare

Critics argued that the budget favored impressive-looking national indicators over the needs of common citizens.

15. Comparison Between Previous and Current Budgets

Area	Previous Budget	Current Budget	Analysis
GDP growth	Lower	Slightly higher	Moderate improvement
Inflation	8%	4.8%	Fell mainly because of oil prices
PSDP	Rs. 525 bn	Rs. 700 bn	Development spending increased
Electricity subsidies	Higher	Lower	Burden shifted to consumers
Education allocation	Lower	Higher	Improved but still inadequate
Agriculture allocation	Higher	Lower	Negative impact on farmers

16. Recommendations

Broaden the tax base. Rely less on indirect taxes, which hit poorer people hardest.
Increase social sector spending. Put more money into education, health, and poverty reduction.
Reform agriculture. Support farmers with subsidies, better water management, and modern technology.
Reduce the fiscal deficit. Control unnecessary spending and improve tax collection.
Encourage industrial growth. Offer incentives for exports, small and medium enterprises (SMEs), and investment.

17. Conclusion

The current budget showed moderate economic stabilization and higher development spending, especially on infrastructure and energy. Inflation fell, PSDP allocations rose, and some relief was given to salaried individuals.

However, deeper problems remained. Heavy reliance on indirect taxes, reduced subsidies, weak support for agriculture, rising public debt, and too little investment in education and health limited the budget’s impact. While it contained some people-friendly measures, it was held back by fiscal pressures and lacked the bold reforms needed for lasting, inclusive growth.

One thing to fix: your notes give previous inflation as 8%, while your Economic Survey notes said 8.6%. I used 8% here to match this section, but pick one figure and use it throughout your assignment. If you want, I can combine all three parts into one complete document or convert it to WordPress block format.

Critical Analysis on Problems and Performance of Major Sectors of Pakistan

1) Introduction

The economy of Pakistan mainly depends upon three major sectors:

Agriculture
Industry
Services

These sectors collectively determine the country’s:

GDP growth,
Employment generation,
Export performance,
Revenue collection,
And socio-economic development.

According to the Economic Survey FY 2014–15, Pakistan’s GDP growth accelerated from 4.03 percent to:

GDP\ Growth = 4.24%

The growth was considered broad-based because all major sectors contributed positively. However, despite moderate improvement, Pakistan’s economy continued to face structural weaknesses, low productivity, energy shortages, governance problems, and inadequate investment in human capital.

2) Agriculture Sector

a. Current Scenario

Agriculture is the backbone of Pakistan’s economy because it:

Provides food,
Supplies raw material to industries,
Generates exports,
And employs a large labor force.

Contribution to GDP and Employment

Agriculture\ Share\ in\ GDP = 20.9%

Agriculture\ Employment = 43.5%

Sub-Sectors of Agriculture

Agriculture consists of:

Crops
Livestock
Forestry
Fisheries

Agricultural Growth

Previous Year

Agricultural\ Growth_{2013-14}=2.7%

Current Year

Agricultural\ Growth_{2014-15}=2.9%

Performance of Agricultural Sub-Sectors

Crops

Crop\ Growth = 1.0%

Livestock

Livestock\ Growth = 4.1%

Forestry

Forestry\ Growth = 3.2%

Fisheries

Fishing\ Growth = 5.8%

Livestock and fisheries performed comparatively better than major crops.

b. Problems Related to Agriculture

Despite its importance, agriculture in Pakistan suffers from multiple problems.

i. Lack of Education and Capital

Most farmers:

Lack modern agricultural knowledge,
Cannot afford machinery and quality inputs.

ii. Traditional Farming Methods

Farmers continue to rely on:

Outdated cultivation methods,
Traditional seeds,
Manual farming.

This lowers productivity.

iii. Waterlogging and Salinity

Excessive irrigation and poor drainage have damaged fertile land, especially in:

Punjab
Sindh

iv. Uneconomical Land Holdings

Land fragmentation reduces:

Efficiency,
Mechanization,
And commercial farming opportunities.

v. Scarcity of Water

Pakistan faces severe water shortages due to:

Climate change,
Poor water management,
Indian hydro projects,
And population growth.

vi. Soil Erosion

Deforestation and poor land management reduce soil fertility.

vii. Weak Marketing System

Farmers often suffer because:

Middlemen exploit them,
Storage facilities are inadequate,
Market access is poor.

viii. Pests and Crop Diseases

Crop losses occur due to:

Lack of pesticides,
Poor extension services,
Climate-related diseases.

ix. Poor Transportation

Inadequate rural infrastructure increases transportation costs and post-harvest losses.

x. Lack of Credit Facilities

Small farmers have limited access to:

Agricultural loans,
Insurance,
Financial assistance.

xi. Low Yield Per Acre

Pakistan’s agricultural productivity remains lower than many countries because of:

Poor seeds,
Water shortages,
Lack of mechanization.

c. Suggestions and Remedies for Agriculture

i. Land Reclamation

Government should address:

Waterlogging,
Salinity,
Soil degradation.

ii. Improved Irrigation Facilities

Modern irrigation methods such as:

Drip irrigation,
Sprinkler systems,
Canal lining

should be promoted.

iii. Use of Fertilizers

Balanced and scientific fertilizer use can improve productivity.

iv. Credit Facilities

Easy agricultural loans should be provided to farmers.

v. Better Quality Seeds

High-yield and climate-resistant seeds must be introduced.

vi. Plant Protection

Research institutions should help farmers combat:

Pests,
Diseases,
Crop damage.

vii. Mechanization

Modern machinery should be made affordable for farmers.

viii. Cooperative Farming

Small farmers should cooperate to:

Share resources,
Reduce costs,
Increase efficiency.

ix. Agricultural Education

Training programs should improve farmers’ technical knowledge.

x. Better Marketing Facilities

The government should:

Build storage centers,
Improve market access,
Eliminate exploitative middlemen.

xi. Improved Transport and Communication

Rural infrastructure development is essential for agricultural growth.

3) Industrial Sector

a. Current Scenario

Industry is a key driver of:

Economic growth,
Employment,
Exports,
Revenue generation.

Contribution to GDP

Industrial\ Share\ in\ GDP = 20.30%

Importance of Manufacturing

Manufacturing contributes approximately:

Manufacturing\ Share\ in\ Industry = 65.4%

Components of Manufacturing

Large Scale Manufacturing

LSM = 80%

Small Scale Manufacturing

SSM = 13%

Slaughtering

Slaughtering = 7%

Energy Sector Growth

Previous Year

Energy\ Growth_{Previous}=5.57%

Current Year

Energy\ Growth_{Current}=1.94%

The decline reflected the severe energy crisis.

Textile Industry

Textiles are Pakistan’s largest industry and export sector.

Contribution

About 66% of exports
Around 40% industrial labor employment

b. Problems Faced by Industrial Sector

Textile Industry Problems

i. Financial Problems

Industries face:

High interest rates,
Limited financing,
Liquidity shortages.

ii. Domestic Issues

Political instability and poor governance affect industrial growth.

iii. Global Recession

International economic slowdowns reduce export demand.

iv. Input Issues

Rising prices of:

Cotton,
Electricity,
Fuel,
Raw materials

increase production costs.

v. Taxation Issues

Complex taxation discourages industrial investment.

vi. Energy Crisis

Electricity and gas shortages remain the biggest obstacle.

vii. International Competition

Countries like:

China
Bangladesh
India

compete strongly in textile exports.

viii. Environmental Issues

Industrial pollution and lack of environmental compliance create problems.

c. Remedies and Solutions for Industry

i. Input Reforms

Reduce costs of:

Energy,
Raw materials,
Transportation.

ii. Energy Solutions

Invest in:

Hydropower,
Renewable energy,
Gas infrastructure.

iii. Financial Measures

Provide:

Industrial loans,
Export financing,
Tax incentives.

iv. Human Resource Development

Technical training institutions should improve workforce skills.

v. Promotion of SMEs

Small and medium enterprises should receive:

Financial support,
Technical assistance,
Export facilitation.

vi. Labor-Intensive Industries

Industries that generate employment should be encouraged.

vii. Tax Reforms

Simplify industrial taxation to encourage investment.

viii. Foreign Investment Promotion

Political stability and investor-friendly policies are essential.

ix. Environmental Reforms

Industries should adopt sustainable production methods.

4) Services Sector

a. Current Scenario

The services sector is the largest contributor to Pakistan’s GDP.

Contribution to GDP

Services\ Sector\ Share = 58.8%

Growth Rate

Previous Year

Services\ Growth_{Previous}=4.37%

Current Year

Services\ Growth_{Current}=4.95%

Major Sub-Sectors

Transport
Communication
Banking
Insurance
Trade
Housing
Government Services
Private Services

Performance of Major Components

Finance and Insurance

Finance\ and\ Insurance = 6.1%

Government Services

Government\ Services = 9.4%

Housing

Housing\ Services = 4.0%

Private Services

Private\ Services = 5.9%

Transport and Communication

Transport\ and\ Communication = 4.2%

Wholesale and Retail Trade

Wholesale\ and\ Retail\ Trade = 3.4%

b. Problems of Services Sector

i. Lack of Technical Skills

Workers often lack:

Professional training,
Modern technical expertise,
Digital literacy.

ii. Inability to Meet Global Standards

Pakistani services struggle to compete internationally.

iii. Low Labor Absorption

Modern services sectors absorb limited labor due to:

Automation,
Skill mismatch.

iv. Lack of New Service Opportunities

Innovation and diversification remain weak.

v. Weak Research and Development

Pakistan spends very little on R&D.

vi. Technology Gap

Technology adoption remains slow.

vii. Weak Human Resource Development

Management quality and professional training require improvement.

viii. Lack of Leadership

Policy inconsistency and weak governance hinder growth.

ix. Corruption and Nepotism

Administrative inefficiency reduces investor confidence.

c. Strategy for Development of Services Sector

i. Better Infrastructure

Improve:

ICT,
Roads,
Ports,
Communication networks.

ii. Efficient Logistics

Modern supply chains and logistics systems are necessary.

iii. Human Resource Mobilization

Invest in:

Education,
Skill development,
Entrepreneurship.

iv. Communication Skills

Language and professional communication skills should be improved.

v. Skill Upgradation

Continuous training programs should be introduced.

vi. Liberal Economic Policies

Encourage:

Investment,
Innovation,
Competition.

vii. Improve Legal System

Reduce delays in dispute settlement and protect investments.

5) Comparative Analysis of Major Sectors

Sector	Contribution	Major Problem	Performance
Agriculture	Food & Employment	Water scarcity	Moderate
Industry	Exports & Manufacturing	Energy crisis	Weak
Services	Largest GDP share	Skill gap	Relatively strong

6) Conclusion

The agriculture, industrial, and services sectors collectively form the backbone of Pakistan’s economy. Although the Economic Survey FY 2014–15 showed moderate growth in all three sectors, Pakistan still faces deep structural challenges including low productivity, energy shortages, weak governance, outdated technology, poor human resource development, and inadequate infrastructure.

Agriculture continues to suffer from water scarcity and low mechanization, industry remains constrained by the energy crisis and weak competitiveness, while the services sector struggles with technological and skill limitations. Sustainable economic development requires comprehensive reforms, investment in education and infrastructure, modernization of agriculture and industry, promotion of exports, and improvement in governance and institutional efficiency.