And now the bad news

All coins are double-sided and having commented on some of the better news coming out of Pakistan in 2017, the less-good news is no less worthy of note. According to a report released by the State Bank of Pakistan (SBP), our exports are dropping like a stone and there is a need to review economic policies and not least the rationale behind supporting expensive trade missions around the world. Trade missions are a part of the diplomatic architecture worldwide because everybody has something to sell, but they all cost money; and if they are sited in places where our trade opportunities and potential are low then their viability and necessity has to be questioned — and cuts made where appropriate.

With the exception of Europe where we enjoy duty-free status, exports shrunk just about everywhere else. Even in EU member states we have failed to realise the full benefits of our privileged status with just 3.1 per cent growth over the previous year. All this has to be viewed in the context of a government that came to power in June 2013 with a business-friendly item on its ticket. Our competitiveness has eroded as the rupee is overvalued by around 10 per cent against the dollar according to the International Monetary Fund (IMF). The federal finance ministry disagrees and is maintaining the current exchange rate parity. Despite being supposedly business friendly there have been few tax incentives in the five budgets since the last election and an additional Rs1.3 trillion have been levied.

The trade missions in both North and South America are performing sub-par and are something of a sinecure for the lucky bureaucrats and diplomats that staff them. If the missions are not generating income then they are below sustainability and must be reviewed with a view to either contraction or relocation of trade mission staff to somewhere that finds them gainful employment. Exports to Latin America are down and to South America there is a drop of 4.3 per cent. These figures are mirrored elsewhere. In terms of trade missions we are living beyond our means. Refocus, retrench and bite a few bullets no matter the squeals from a privileged few.

Published in The Express Tribune, July 23^rd, 2017.

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