Export promotion: High cost a key hurdle to exports, argue experts

FCCI SVP says Brexit has complicated export challenges

FAISALABAD: Despite positive macroeconomic indicators, experts argue that high cost of doing business is a matter of concern for the policymakers and Pakistan needs to revisit its economic policies in addition to exploring non-traditional markets and diversifying exports, said Faisalabad Chamber of Commerce and Industry Senior Vice President Syed Zia Alamdar Hussain.

He was speaking at an awareness session on the “Post-Strategic Trade Policy Framework (STPF) 2015-18”. It was attended by Trade Policy Director General Ministry of Commerce Raheela Tajwar and USAID Regional Trade and Policy Adviser Mohammad Owais Khan.

Hussain said the federal government had taken bold and comprehensive decisions to strengthen the economy on a sustainable basis. He appreciated the zero-rating of exports, uninterrupted energy supply and availability of capital at reasonable mark-up.

Although the economy had now been put on the right track, it would take some time to fully recover from the setbacks and crisis of the past many years, he remarked.

Hussain pointed out that the government had fixed the export target at $25.5 billion in the STPF, but after Brexit vote, challenges to exports under the GSP Plus had become further complicated.

“Currently, Pakistan is exporting its products to only 50 countries out of 196, hence, we must expand the scope of exports to the unexplored destinations,” he said. “The major hurdle identified is the high cost of doing business and we must take immediate remedial steps to make our products competitive in the regional as well as international markets.”

Published in The Express Tribune, August 28^th, 2016.

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