Adapting to a changing world

In recent times when the country is facing multiple problems and good news is a rarity significant progress in any sector industrial agriculture or technology is a morale raiser and a stimulus for economic growth. Textile sector, which has always been a significant contributor to the exports of Pakistan, has for the last few years been struggling to keep pace with modern trends and developments so that its products remain in demand. The recent fashion show in Karachi by a well-known fashion designer did confirm that this sector remains fully energised and their company is a leader in fashion design, capable of facing international competition. This is good news considering that Pakistan's fashion and textile exports contribute a significant percentage to its overall economy. And this fact is not well known but it is important that the people are aware of it and appreciate its successes. In FY2022-2023 Pakistan's total exports of textiles were close to $19.3 billion. This includes yarn, fabrics, apparel and home textiles.

Similarly, Pakistan needs to capitalise on the demand in exports of sports goods as it had in the past. Footballs made in Pakistan had earned international recognition and are well sought-after. Pakistan exports its footballs to North America and Europe. Germany and Belgium are the main buyers. It is encouraging that the demand has been increasing as a result of which other countries especially in Latin America Brazil and Argentina are setting up manufacturing plants. As competition is increasing Pakistan would need to ensure quality and competitive pricing to remain in demand.

There has to be a serious effort by the government and the private sector to boost exports. This would, however, require long-term planning and serious effort by the government and the private sector to improve quality of its products and gradually reduce imports.

There is perhaps no sufficient realisation among the leadership that due to the present state of Pakistan's economy large segments of population are facing poverty and hardship. Pakistan's economy is 25th in the world in terms of purchasing power and about 50th in dollar terms. The economy and its larger potential have been undermined by population of around 240 million that continues to grow. The leadership seems to be oblivious to the pains and hardships that a large cross-section of the population is facing. Due to disturbed security situation with TTP stepping up its activities, people in the border area are even more severely affected.

According to reputed economists Pakistan's potential for improving its economy and moving towards stability lies in increasing the GDP growth rate to around 7 per cent and lowering the deficit to 4 per cent. But successive governments have failed to achieve these targets so far. It remains to be seen that in the near future these targets would be met and the financial situation improves. Pakistan's external debt now stands at $130.4 billion and servicing costs keep rising. But is there sufficient realisation among the leadership that the increasing debt and service is reaching a point that it is not tenable for the long run. Moreover, the quality of governance and the overall security situation has to improve further to attract investment. Although accountability and corruption are being addressed, they remain a problem at many levels and should be of concern to the civilian and military leadership. The government should seriously look into governmental processes and accountability to improve performance and gain the confidence of foreign and local investors. This will not be easy unless there is a continuous genuine effort to address these weaknesses. It is also doubtful if the leadership realises that fostering and adhering to democratic norms is essential for promoting long-term economic and financial interests. And one of the reasons behind very low foreign and even local investment is the present political and security situation in the country. It is extremely disconcerting that even after seventy-seven years of existence Pakistan has not been able to achieve political stability and economic autonomy.

Seeking loans and grants from IMF, World Bank and friendly countries like China and Saudi Arabia has become the norm. It is time our leaders took a long-term view of Pakistan's destiny and pursued policies that would place it on a steady course towards stability and economic independence.

Nations progress when the focus of their leaders is on education and building an infrastructure that promotes economic and technological progress. On the contrary, in Pakistan personal rivalries of leaders leading to antagonistic politics and their lack of focus on major issues adversely affects governance. This also creates space for military and bureaucracy to play a bigger role in governance.

The deteriorating security situation with TTP gaining strength in border areas should also be a matter of serious concern for political and military leadership. Apart from countering the threat by boosting the security forces the government should create opportunities for improving the economy and living conditions of the area. This aspect has not received the attention that it deserves.

Looking at the larger picture, our leadership needs to find ways of harnessing the power of new technologies to boost the economy and improve the quality of life of its people. We cannot afford to keep our eyes closed while the world moves on. IT and new technologies, such as development in space, have revolutionised the way we think and the way we work. The ascent to the moon by the astronauts was no ordinary achievement.

A few companies in Pakistan have moved in a positive direction and making efforts to stay abreast with changes. But a much broader focus in this direction will contribute significantly to strengthening our economy. All these developments point toward giving greater space to young educated personnel in policy-making and implementation. They also have to be drawn into politics for changing its culture so that leadership can contribute to strengthening the country in accordance and harmony with the changing world.

Attaining these goals is not fantasy but a pragmatic approach to remain relevant and keeping pace with a changing world.