Assessment Study of Export, Import Price Indexes and Their Foretell Trend in Case of Pakistan

Abstract

Purpose: This analysis examines the import and export price indexes and sudden changes in increasing curves in case of Pakistan. Methodology: In this case study the Spearman Rank correlation coefficient, denoted by , is used for computation the association between both price indexes over the time period of sixteen quarters from  2012-15. Findings: The empirical results show that the two rankings i.e. Export Price and Import Price indexes have direct and significant relationship at the level of 0.05 level of significance (α) and Import and Export price indexes curves show a steady increase to upward on QoQ (Quarter on Quarter) basis. Recommendations: To strengthen economy government need to resolve energy issue through proactive measures and planning for attaining appropriate productivity by the industrial sector and increase exports goods to maintain balance of payment. The government should ensure the trade with neighboring countries and chalk out comprehensive plan for industrial estates to utilize potential youth edge and cheap labour to overcome unemployment and manufacturing cost.  

Keywords: Balance of Payment, Economy, Machinery, Product, Trade,