Charter of the Economy The incentives, imply an effective exchange rate on the country’s exports of almost 26 percent. Pakistan has the choice as to the extent to which the various incentives can be converted into a cash incentive payable along with the export receipts. The actual incentive can then be withdrawn. Recommendations Need for highest priority to boosting exports: Pakistan is entering a period of peak external debt repayment. Consequently, external financing requirements need to be limited by reducing the size of the current account deficit to below 3 percent of the GDP each year from 2021-22 to 2024-25. This will require both the promotion of exports and the containment of imports. Using the exchange rate for preserving profitability: The exchange rate should reflect not only the rise in domestic input costs due to inflation, but exporters should also be compensated for any drop in dollar prices of exports by a corresponding adjustment in the exchange rate. Developing Strategy for Promotion of Emerging Exports: The emerging exports of Pakistan have been identified above. The Trade Development Authority of Pakistan(TDAP) must develop a detailed plan of the steps needed for promotion of each emerging export item including quality control, storage facilities, transport, etc. Measures for Improving Competitiveness: The handicaps that Pakistan faces with respect to its competitiveness need to be addressed. The concessional rate of export financing will need to be reduced further given the relatively high interest rates in Pakistan. Lower Electricity Tariff for Exports : The coverage of the lower electricity tariff to export in selected six industries should also cover industries like chemicals, plastics, fans, cement, chemicals and pharmaceuticals, which are emerging as export industries. The percentage of the sales of electricity may be 40 percent lower than the standard rate set by NEPRA. There is need also for changing the petroleum levy on various petroleum products. It may be reduced for High-Speed Diesel Oil and enhanced accordingly for Motor Spirit. Enhancing the Supply of Domestic Inputs: The prime exporting industry of Pakistan, textiles, has been increasingly constrained by lack of adequate supply of domestically produced cotton. The policies recommended for restoring cotton output in Chapter 21 must be implemented on a top priority basis. Diversification of Export Markets: There is need for promoting exports to countries in 162