Daily Times

As the nation grapples with multiple economic challenges, the present government is struggling on numerous fronts to control inflation, enhance foreign exchange reserve, boost exports and lower the burden of local and external debts.

Embarking on number a number of measures in the face of these pressing challenges, the most vital is to revitalize external trade by exploring new destinations and propel it towards a surplus, thereby fueling sustainable economic growth.

With a keen focus on diversification, the government is spearheading a multi-faceted approach to venture beyond traditional markets to tap into non-traditional ones and redefining the country’s trade landscape.

Tariff rationalization, market and commodity diversification, regional trade connectivity; ‘Look Africa Policy’; Free Trade Agreements and negotiations for trade agreements with various countries are hallmarks of policy shift to increase country’s exports and curtail trade deficit.

In the current situation when the country is on path of economic stability, to remove the trade bottlenecks, the ruling alliance has initiated negotiations at the government level to increase regional trade with Central Asian states including Uzbekistan, Kazakhstan, Tajikistan, Turkmenistan and Kyrgyzstan. The measures also include Prime Minister Muhammad Shehbaz Sharif’s visit to Tajikistan with high-level economic team and finalization of agreements.

Negotiations for regional economic integration and trade promotion with various regional countries, including Iran and Azerbaijan also concluded at Shanghais Cooperation Organization (SCO) Summit in Astana (Kazakhstan) last month.

The government has directed Pakistani missions abroad to exclusively focus on economic diplomacy to increase exports in different regions and tap potential global markets.

“Industrial productivity is important to promote our Gross Domestic Product (GDP) and exports,” stated Alamgir Chaudhry, Chief Executive Officer, National Productivity organization (NPO).

He said currently Pakistan’s exports are facing competitiveness in global markets and this issue can be resolved by modernizing our industrial sector and upgrading human resources capital. “The NPO has started Productivity Drive to improve economic literacy in the country and promote export culture.”

Currently, Pakistan has a trade excess from the Eurasian to European Countries, for which the geographical location of the Central Asian states is significant and provision of Gwadar port for these land-locked states would expand its role in the future geo-economic world and global trade.

The government is currently working on Industrial Competitiveness through Strategic Trade Policy Framework (STPF) to enhance country’s trade, for which the ‘Ease of Doing Policy and Made in Pakistan’ initiative are of great importance for our industry to boost exports.

Alignment of trade Policy in tandem with the macro-economic framework and other national policies like taxation, revenue, textiles and Industrial Policy are the main components of this strategy.

A number of initiatives like simplifying regulations and ensuring an enabling business environment for long-term success of the economy will be implemented to reduce the cost of doing business to make our products more competitive and attracting investment in export sector.

“There is an urgent need for reforms in tax and energy sector to boost trade and increase exports for which FPCCI is engaged in meaningful discussions with the government,” remarked President Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Atif Ikram Sheikh.

“Energy prices should be regionally competitive and facilities should be provided to industry by broadening tax base so the manufacturing and domestic exports could be increased,” he stated.

Atif said that by promoting export culture at this very challenging time, the country’s economy can be set on sustainable economic growth.