KARACHI: Exports as a percentage of GDP have consistently declined while poor Foreign Direct Investment (FDI) could not generate higher economic productivity, said the State Bank of Pakistan (SBP).

In a detailed research in the half-yearly report on the State of the Economy 2024-25, released on Monday, the central bank observed that one of the key underlying issues facing Pakistan’s economy was weak competitiveness.

“From a macroeconomic perspective, this is reflected in consistently declining exports (as a percentage of GDP), low FDI, and overall insufficient integration with global value chains (GVC),” said the report.

From a micro perspective, this is reflected in the low quality of products, the higher unit cost of production, inability to create brands in........

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