As per the news published in various newspapers Pakistan has imposed 15 per cent regulatory duty on exports of cotton yarn. Why countries are required to impose regulatory duties on exports of some of their commodities while in the eyes of the layman more exports means more foreign exchange and more revenue for the Govt.?
(A) It is done to control the exports of a commodity as it may be needed more in local markets than in foreign countries.
(B) It is done to control the general inflation in the country as the inordinate exports of various commodities create imbalance and also cost push inflation.
(C) It is a good short time measure to collect more revenue from the exports of the commodity which is in high demand in overseas markets.
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