Pakistan’s exports can be increased manifold if government succeeds in implementing international trade laws
LAHORE: Pakistan’s exports to foreign markets can be increased manifold if the government succeeds in implementing international trade laws and standards in the country. Many of the country’s exports like processed and canned seafood were previously banned in international markets due to the involvement of child labour in the manufacturing process. Similarly, Pakistan lost trade for red chilies in the European market to India due to a lack of procurement and drying facilities for the produce. Besides, a significant proportion of international trade share has been lost to neighbouring countries for produce like poultry and sports goods. Alongside the non-implementation of internationally set standards for production and trade, domestic crisis, too, has worsened the situation. Over the past few years, Pakistan has also lost a major chunk of its textile exports due to the energy crisis to the extent where many industrial units were shut down, while others moved their manufacturing plants to other countries.
The government’s policies haven’t done enough to facilitate producers and traders by easing trade and taxation policies. As the government has less control over foreign companies engaged in production in Pakistan exploiting the benefits of cheap labour and relatively less strict regulation policies, this has paved the way to put maximum strain and tax burden on local production enterprises.
On the other hand, facilitating businesses in Pakistan has always had political connotations attached to it. As a result, facilitation is awarded mostly on the basis of personal gains and not the good of the country.
Hamza Baig
Published in The Express Tribune, November 24th, 2017.
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