The week in focus
Is the country taking steps to gain a wider foothold in international markets by strengthening its competitiveness?
The slogan of ‘trade not aid’ is being heard for quite some time but the question is whether the country is taking steps to gain a wider foothold in international markets by strengthening its competitiveness.
In these times, when countries mostly rely on international trade to power their economies, make progress and raise living standards of people, the survival of reclusive states seems to be difficult. Regional and other economic powerhouses in Asia like South Korea, Malaysia, China and Japan all have made their mark with their quality products the world over. The latest example is that of China, the fastest growing economy, whose products are being used across the world from Asia to the US.
In Pakistan’s case, the government has been pressing the European Union and the US to provide preferential treatment for its products by reducing and eliminating duties on imports. So far, these efforts have not borne fruit, though the EU had announced a concession package for 75 product lines, but it could not pass through the World Trade Organisation. Instead of pleading for greater market access, does the country not need to make its products competitive to better compete with rivals, step up trade with regional countries by making bilateral arrangements and find new niche markets.
Except for textile, leather products and rice, exports from other sectors have not been significant. With the support of a bulging human resource, the way China and India are powering their economies, Pakistan should acquire state-of-the-art technology, do research and make innovations in the value-added industry to increase exports and reduce imports.
Lobbying
“Aid is not our requirement, we need market access to boost our exports,” Adviser to Sindh Chief Minister on Investment Zubair Motiwala said. “Though our exports increased in the just-ended financial year to more than $24 billion, the rise was in value terms and not in terms of volume, on the back of record high cotton prices in the international market,” he said.
Owing to lack of market access and difficult working conditions in the wake of law and order and energy problems, some of the industrialists had shifted their businesses to Bangladesh, he said. Bangladesh enjoys duty-free exports to the European Union while Pakistan has to pay 13 to 18 per cent duty on its products. “The government should win greater market access to the US and EU by resorting to intense lobbying,” he said.
Motiwala said infrastructure facilities like gas, electricity and water supply were still lacking, which increased the cost of production, making us less competitive in the world market. The other point he cited was the prevalence of family-owned businesses which did not work on professional lines. “Hiring of professionals for running businesses is a must for success.”
Aggressive marketing is another area that needs to be focused on. Motiwala said Pakistani embassies and commercial counsellors have not been helpful in projecting the soft image of Pakistan. “The exaggerated concerns about security in the country should be addressed through proper lobbying,” he said.
The need for restructuring the state-run trade promotion organisation, Trade Development Authority of Pakistan (TDAP), was also underscored. “Though TDAP has been restructured, still there is need for further re-designing the institution,” he said and did not support TDAP’s moves to arrange and participate in a large number of exhibitions. “We should take part in less number of exhibitions, focus on displaying quality products and getting handsome results,” he added.
the writer is incharge Business desk for the Express tribune and can be contacted at ghazanfar.ali@tribune.com.pk
Published in The Express Tribune, July 4th, 2011.
In these times, when countries mostly rely on international trade to power their economies, make progress and raise living standards of people, the survival of reclusive states seems to be difficult. Regional and other economic powerhouses in Asia like South Korea, Malaysia, China and Japan all have made their mark with their quality products the world over. The latest example is that of China, the fastest growing economy, whose products are being used across the world from Asia to the US.
In Pakistan’s case, the government has been pressing the European Union and the US to provide preferential treatment for its products by reducing and eliminating duties on imports. So far, these efforts have not borne fruit, though the EU had announced a concession package for 75 product lines, but it could not pass through the World Trade Organisation. Instead of pleading for greater market access, does the country not need to make its products competitive to better compete with rivals, step up trade with regional countries by making bilateral arrangements and find new niche markets.
Except for textile, leather products and rice, exports from other sectors have not been significant. With the support of a bulging human resource, the way China and India are powering their economies, Pakistan should acquire state-of-the-art technology, do research and make innovations in the value-added industry to increase exports and reduce imports.
Lobbying
“Aid is not our requirement, we need market access to boost our exports,” Adviser to Sindh Chief Minister on Investment Zubair Motiwala said. “Though our exports increased in the just-ended financial year to more than $24 billion, the rise was in value terms and not in terms of volume, on the back of record high cotton prices in the international market,” he said.
Owing to lack of market access and difficult working conditions in the wake of law and order and energy problems, some of the industrialists had shifted their businesses to Bangladesh, he said. Bangladesh enjoys duty-free exports to the European Union while Pakistan has to pay 13 to 18 per cent duty on its products. “The government should win greater market access to the US and EU by resorting to intense lobbying,” he said.
Motiwala said infrastructure facilities like gas, electricity and water supply were still lacking, which increased the cost of production, making us less competitive in the world market. The other point he cited was the prevalence of family-owned businesses which did not work on professional lines. “Hiring of professionals for running businesses is a must for success.”
Aggressive marketing is another area that needs to be focused on. Motiwala said Pakistani embassies and commercial counsellors have not been helpful in projecting the soft image of Pakistan. “The exaggerated concerns about security in the country should be addressed through proper lobbying,” he said.
The need for restructuring the state-run trade promotion organisation, Trade Development Authority of Pakistan (TDAP), was also underscored. “Though TDAP has been restructured, still there is need for further re-designing the institution,” he said and did not support TDAP’s moves to arrange and participate in a large number of exhibitions. “We should take part in less number of exhibitions, focus on displaying quality products and getting handsome results,” he added.
the writer is incharge Business desk for the Express tribune and can be contacted at ghazanfar.ali@tribune.com.pk
Published in The Express Tribune, July 4th, 2011.