IT, textile exports to Australia encouraged
STOCK IMAGE
In order to diversify its export destinations and enhance export volumes, Pakistan should encourage information technology (IT) and textile exports aimed at Australia, which has an estimated GDP of $1.4 trillion.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Irfan Iqbal Sheikh expressed concern that bilateral trade with a large economy like Australia remains far below its potential as total trade is under $1 billion. In addition, the trade deficit with Australia stands at approximately $400 million.
“This must be a cause of deep concern. IT and textile are the two industries which have the potential to exponentially enhance Pakistani exports to Australia,” he added.
“Although exports have been budding in the previous few years, it seems unlikely that they may be able to overcome the trade deficit, especially owing to the increasing cost of business due to petroleum price hikes,” noted SI Global Solutions CEO Noman Ahmed Said.
“Access to the internet, combined with digital literacy, can open up opportunities for more people to support themselves and increase exports,” Noman underscored.
Former FPCCI president Mian Anjum Nisar emphasised that national food security and efficient agricultural yields are the areas where Pakistan needs to learn from the Australian experience.
“These include agricultural technologies, protecting crops from natural hazards, water management practices, crop mapping, fields-to-market roads and networks, export marketing of agricultural products and state-of-the-art food processing facilities.”
Australian High Commissioner Neil Hawkins expressed his willingness to facilitate people-to-people, business-to-business and chamber-to-chamber engagements and linkages between the two countries. He specifically expressed his desire to help the country with its flood relief and rehabilitation needs, which require enormous efforts on a global scale.
Read Australia unveils privacy rule changes after Optus data breach
Hawkins apprised that 40,000 Pakistani students are studying in Australia and that the Pakistani diaspora is increasing as more Pakistanis opt for immigration to his country. He also highlighted that Australia is accepting 195,000 skilled immigrants every year from around the world.
FPCCI Vice President MA Jabbar said that Australia should offer swift and easy visa processing to Pakistani businessmen and cooperate in the transfer of industrial technology to the country.
He pointed out that Australia is the world’s top country which is equipped and experienced in the management of natural disasters. “Australia should come forward to help Pakistan with rehabilitation after almost one-third of the country has been devastated by the recent floods.”
Export diversification should be focused for value-added textiles as well as exports of services, primarily in the field of information technology, suggested Arif Habib Limited Head of Research Tahir Abbas.
“Moreover, with the large diaspora in Australia, Pakistani products can easily penetrate the Australian market. Also, sports goods from Pakistan could be a big potential market and should be explored accordingly,” he added.
Published in The Express Tribune, October 7th, 2022.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.