Daily Times

KARACHI: Major exports of Pakistan remained under stress due to more than one count. Opaque policies are the outcome of without taking the real business stakeholders across the board during chalking out export strategies and economic policies, exporters viewed.

Financial and budget managers in the helm of the government affairs are also lacking vision and seemed unwilling to share with prime business and trade people. Pakistani exporters of textile, leather, surgical, sport goods and carpet products are at a disadvantage. They suffer infrastructure deficit, lack of services from government as well as delays in approvals.

One of the sad affair is the political economy favours the influential to the disadvantage of the many. Agha Saiddain of Pakistan tanners Association, Ghulam Rabbani of Pakistan Yarn Merchants Association, Jawed Bilwani of Pakistan Apparel Forum, Sanaullah Khan of marble and mining sector and representatives of other export sectors opined that the limited economic resources are also not allocated efficiently. Other includes the weak macroeconomic framework.

Due to government’s inadequate revenue exposure, it is difficult to meet current and development needs. Resultantly it leads to high fiscal deficit met from domestic and international borrowing. And external indebtedness has made the economy vulnerable. Lack of competitiveness has worsened the structural current account deficit as exports have been witnessing continuous decline.

Pakistan does not generate enough savings for it to invest in future growth. Resultantly, it has significant infrastructure deficit and low private investment.

For instance, Pakistan has 8 percent saving to Gross Domestic Products (GDP), while United States of America has 21 percent, South Korea 36 percent, Vietnam 30 percent, India 31 percent and China has 50 percent to GDP.

Ghulam Rabbani viewed that the trade policy should address the weaknesses of industrial productivity in the country as the cost of industrial production in the country has escalated enormously over the last many years due to the intermittent raise in the price of utilities.

Besides, the present different taxation rates are so high that exporters are facing difficulties to compete international markets.

Indian and Chinese manufacturers are now aggressively counterfeiting our products in International market like in Africa.

Commercial sections in our foreign consulates should be charged to protect Pakistan exports, brands and reputation. Furthermore, commercial consulates can be prevailed upon to play a much greater role in exploring new business contacts and customers. So far this role is non-existent in most of our African consulates.

Saiddain said that Pakistani exports are uncompetitive in international market vis-à-vis Bangladesh, India, China. Our regional rivals are comparatively cheaper due to lesser input costs and lesser duties, taxes and levies.

The authorities prepare policies without prior consultation with relevant industry and then expect from the business community to mould according to the policy.

This is due to the lack of proper liaison between the industry and the government.

In 2013, Pakistan had recorded an export of $25,078 million,. In January 2017, exports for 2015-16 were recorded at $21,977 million. This is a decline by 12.36 percent during the time period, when a 1 percent decline is observed in the global level of exports of goods and services.