Export-led growth critical for economic revival

FPCCI chairman advocates for diversification of markets, products

ISLAMABAD:

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Capital Office Chairman Karim Aziz Malik has said that export-led growth is necessary for economic revival and increasing the pace of development in the country.

“At this time, search for new potential markets and product diversification is very important for export-led growth,” remarked Malik while talking to APP on Saturday.

He called on the government to explore new markets for diversification and increase regional trade, which would also improve business trend in the country.

Along with that, new sectors should be brought to the fore for product diversification and to achieve this, value-added products need to be introduced in all important sectors.

Malik pointed out that after Covid-19 obstacles had emerged in the global supply chain; therefore, Pakistan had to align itself with the value chain to increase exports.

He underlined that value addition in agriculture and the development of agricultural industry were necessary for giving a boost to exports.

In the just-ended fiscal year, Pakistan’s rice exports reached a record high of $3.5 billion and shipments are expected to reach $5 billion in the next one year.

Rice is the second largest export industry in Pakistan, which is looking for zero-rated status like other major export sectors.

For economic rejuvenation, Malik said, energy prices should be brought on a par with those in regional countries to help develop the domestic industry. He mentioned Central Asian states as very critical for promoting regional trade, where Pakistan could find vast opportunities.

Turning to the cost of borrowing, the FPCCI Capital Office chairman stressed that the State Bank of Pakistan (SBP) should reduce its policy rate to clear the way for utilising Rs30 trillion lying in banks to promote business and investment.

He urged the government to fix flaws in the Federal Board of Revenue’s (FBR) system to increase tax revenue, adding that new taxes of Rs1,700 billion would increase inflation in the country.

He underlined the need for the government to adopt austerity measures and accelerate the privatisation process of state-owned enterprises to curb expenditures.

He proposed the reduction in government expenses by slashing interest rate by 550 basis points; otherwise the relief that people got from the fall in inflation would not remain in place for a longer period.