Imports will remain strong as the economy’s requirements for capital and intermediate goods for industry grow. Balance of payment position will benefit from industrial diversification which is critical for export diversification as well as for encouraging import substitution (particularly in food commodities) where Pakistan has competitive advantages.
Any pressures on aggregate demand because of slippages will need monetary tightening as central bank would remain committed to the objective of price stability. To realize these goals, Pakistan needs to now direct investment flows, both domestic and foreign, to areas which can help stimulate industry and its diversification, and help remove gaps and bottlenecks in the infrastructure.