Dwindling exports
Pakistan’s exports have been declining for a while and the BOT with most countries is tilted in favour of the other
Pakistan’s exports have been declining for a while and the BOT with most countries is tilted in favour of the other. PHOTO: FILE
Pakistan’s exports have been declining for a while and the balance of trade with most countries is heavily tilted in favour of the other. Some blame the global economic slowdown for the sharp fall in export proceeds, while some point at a strong Pakistani rupee. However, many rightly believe that the problems are home-grown with over-emphasis on one sector, lack of value-addition and issues of substandard quality being key hindrances. Now there are reports that the commerce ministry is preparing a 21-point plan to increase exports and improve its own performance. The question here arises as to why the ministry has suddenly woken up to the need of making such plans. Our exports have been falling for some time and there has been little talk about how to increase foreign exchange reserves through this source.
Much time and energy have been wasted on blaming the global economic slowdown for falling exports, but the country’s negligent attitude is no less to blame. In a recent development, Jordan declined to buy wheat from Pakistan since it was of “sub-standard” quality. A Pakistani official confirmed that the wheat had been infected with “dust and other ingredients”. This is the nub of the issue. After months of negotiations, as it looked to export a surplus commodity, Pakistan failed at the final hurdle. This is one example of negligence taking away from whatever efforts were made by farmers, officials and trade ambassadors. The finance minister insists that depressed commodity prices have led to a decline in export volume. What he ignores are stuck refunds of the textile sector that have achieved nothing besides inflating tax revenue figures. What he also does not see is that Pakistani goods lack global competitiveness. Poor negotiation skills and a failure to adopt advanced technologies have also contributed towards falling exports, with the commerce ministry having done little towards making improvements in this area.
Published in The Express Tribune, September 9th, 2016.
Much time and energy have been wasted on blaming the global economic slowdown for falling exports, but the country’s negligent attitude is no less to blame. In a recent development, Jordan declined to buy wheat from Pakistan since it was of “sub-standard” quality. A Pakistani official confirmed that the wheat had been infected with “dust and other ingredients”. This is the nub of the issue. After months of negotiations, as it looked to export a surplus commodity, Pakistan failed at the final hurdle. This is one example of negligence taking away from whatever efforts were made by farmers, officials and trade ambassadors. The finance minister insists that depressed commodity prices have led to a decline in export volume. What he ignores are stuck refunds of the textile sector that have achieved nothing besides inflating tax revenue figures. What he also does not see is that Pakistani goods lack global competitiveness. Poor negotiation skills and a failure to adopt advanced technologies have also contributed towards falling exports, with the commerce ministry having done little towards making improvements in this area.
Published in The Express Tribune, September 9th, 2016.