To arrest the trend of weak foreign currency reserves, Pakistan has to give priority to enhancing the export of goods.
KARACHI: This has reference to a news item titled “Trade gap shrinks as imports slow down” published in The Express Tribune on January 16, 2014. As per the report, Pakistan’s trade deficit stood over a billion dollars more than the IMF’s projection in the first half of the current fiscal year. As a result, foreign currency reserves are under immense pressure. Despite the narrowing deficit, which reflects signs of economic slowdown, the country’s balance of payment woes do not ease.
According to the report, exports were $501 million less than the IMF’s projection, while imports were $550 million higher than the estimates. Because of this situation, the country’s foreign currency levels were at a lower level at $3.2 billion in early January.
To arrest the trend of weak foreign currency reserves, Pakistan has to give priority to enhancing the export of goods and services and increase its share in the international job market. When nations export abroad, they create job opportunities at home and earn foreign exchange for the country. And when a country’s citizens find jobs abroad, they become an important source of foreign exchange earnings by way of sending remittances home.
The Trade Development Authority of Pakistan (TDAP), under the Ministry of Commerce, is doing quite well in reaching out to new markets and identifying new products for niche export market. The GSP Plus scheme of 27 countries of the European Union offers enormous opportunities for export growth. The TDAP is specially focusing on eastern Europe, where the market for Pakistan’s products remains not fully explored.
We know that exporters are facing tremendous obstacles in meeting the demand for their products from foreign buyers due to the energy crisis and other issues.
The energy problem, however, does not impede efforts for exploring the international job market. Remittances from Pakistanis working abroad robustly increased by 22 per cent and reached over $7 billion during the period from July-December 2013. Yet, our attention to the international job market is not adequate enough. Pakistan is a nation of hardworking 180 million people. We must take quick measures to realise the full potential of our talented youth. The Gulf region — the UAE, Saudi Arabia, Oman, Kuwait, Qatar and Bahrain — is an attractive destination for job-seekers from many countries. It is imperative that alongside with making the decision of shutting down trade offices with virtually zero performance, the country should also consider opening new offices at the right locations, where opportunities for remunerative jobs abound. One such region is the Gulf region. Presently, Pakistan does have trade offices in the UAE and Saudi Arabia, but Kuwait, Oman, Qatar and Bahrain remain unattended. There is no trade office there to look after the interests of Pakistan’s workforce in these oil-rich countries. With concerted efforts, the country can get an ample share in employment of these Arab countries.
Muhammad Essa Jalbani
Published in The Express Tribune, January 21st, 2014.
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