ISLAMABAD: Prime Minister Shehbaz Sharif issued instructions on Friday to increase the country’s exports during the next fiscal year while chairing a meeting to evaluate proposals related to the Public Sector Development Program (PSDP) ahead of the upcoming budget.

Pakistan has recently experienced a decline in exports after commercial banks refused to open letters of credit (LCs) due to a dollar liquidity crunch triggered by a massive financial crisis in the country.

Additionally, the government also limited imports due to rapidly declining forex reserves and a depreciating rupee, reducing the overall production potential of the industrial sector and further exacerbated the economic slowdown in Pakistan.

“The prime minister issued clear instructions to provide alternatives to domestic imports, increase exports and give priority to innovation projects of various sectors in the development projects of the Budget 2023-24,” said a statement issued by his office after the meeting.

During the gathering, participants were also informed about the progress of ongoing projects under the PSDP.

The prime minister emphasized that agriculture, renewable energy, higher education for youth, vocational training, and employment projects should remain central to the development budget.

It was also agreed that projects related to the development of the information technology sector would play a significant role in the country’s economic planning for the next fiscal year.

Pakistan has witnessed the highest inflation rate of about 38 percent in recent weeks. Its finance minister is scheduled to announce the federal budget amid mounting economic challenges on June 9.