Export Can Uplift Pakistan’s Economy

The total trade volume of Pakistan is USD 84 billion till 2018- this is the sum of exports and imports from crossing the border of the country. Only USD 23 billion is exports. According to the world’s bank of Pakistan, it’s found that export of Pakistan is increased only 50pc till 2017. Pakistan’s export is dominated by appeal and textile.  The import includes petroleum items, fertilizers, capital goods, consumer products, and industrial raw material. But Pakistan economy distress- low exports, growing fiscal deficit, high inflation, dwindling reserves of foreign exchange, etc. Nothing new information, once again we’re facing loss. Pakistan has found a solution to increasing export- It means knocking on the door of success.

In 2019, Pakistan is facing dire macroeconomic crises. We should spend an amount for increasing our exports. Meanwhile, the external debt of government has increased from USD 64 billion to USD 65.8 billion in Jan 2019 and the inflation rate is 9.4%- high due to rising energy prices and rupee depreciation. People say the previous government is failed to enhance the export- total exports fell in reality. Pakistan should take substantial steps for improvement of macro-economic conditions and modernize this sector to become a competitive and struggling nation in international markets.  

Karachi Port of Pakistan

We should increase export instead of depending on loans or foreign aids. In a political point of view, we should focus on security, improving laws and regulation and boost our overall image for both industry and tourists.  These tasks are observed by the government. SMSs should encourage domestic investment with the help of policies. These measures would help us on stage as stable.  Pakistan should focus on building its industry and its competitiveness internationally.

Pakistan is ranked on 107^th out of 140 on GCI (Global competitiveness index), it measures the performance like ICT Adoption, infrastructure, stability, skills, labor market, innovation capacity, etc.

The low ranking shows that the government is taking measures for a favorable business environment. As we can export our high-quality goods at low price to China, Bangladesh, and the Middle East, USA, UK, and European market. It’s possible by investing in all products, searching to encourage the product’s innovation and by enhancing labor productivity. Pakistan is a failure to expand export profile for lo-added products such as rice, sports, leather, carpets, and textiles.  Saudi, UAE, and China can help us to increase export in different sectors. You can say that the market demand is distributed. Pakistan should discover new expensive markets for all fruits to avoid depending on only limited areas or countries. 

Pakistan has taken some serious steps to promote trade as they want to promote regional trade including furniture and reduced dependency on imports. It’s a way to improve the economy of Pakistan. Pakistan can become the best exporter for textiles, fresh fruits and vegetables, and furniture. SMEs sector will also encourage all sectors for prosperity. We’ve also reduced the cost of energy. Our challenges are security issues, excessive taxes, and administration. Pakistan army has also solved security problems.

According to Recent Statistics, Pakistan is ranked on 136^th position and 173^rd in terms of tax system. For handling the tax problem, now the government has managed tax reforms implementation committee to separate duties of FBR.

China-Pakistan Economic Corridor

This will reduce the costs of doing business and encourage SMSs to operate freely. Pakistan is entered into the main phase of CPEC- China Pakistan Economic Corridor. It means the government will focus on industry development and trade policies. Now multinational companies will take part in it. It’s an indication of the stability of economy of Pakistan.

For enhancement in export, we should support entrepreneurship and creating avenues for betterment by guiding the young generation.  Export is the backbone of our economy. Decreasing exports means not a favorable balance of amounts that becomes a cause of depreciation of the rupee. Pakistan export should stagnant at $ 24 to 25 billion (variables). Pakistan is the main trading partner of China, USA, and UK. Major export of Pakistan is rice, leather, cotton, chemical, and jewelry. The second method is expanding our products. Export-oriented investment should be attractive.  Now the government says that Pakistan’s export will increase up to USD 36 billion in the coming year. We believe in honesty and dedication of our government.

Pakistan share for fresh fruits and vegetable in wide range or huge quantity. Thus land contributes due to good climate conductive for growth in wide range for perishable items and others product as well.  Agriculture is another important and largest sector which improves trade’s balance of payment. The fruits and vegetables are the main part of horticulture market. This is due to good climate in Pakistan. We’re exporting to Europe, USA, far East, Middle East, Sri Lanka and India. Oranges, Guava, mangoes, Kinnow, apples, pine nuts, dates, and vegetables are favorite in the international market.  Dubai, Saudi Arabia, UK is the biggest market for Pakistan.  Pakistan must explore all its products. We have strong hold in production so it means we can produce more and can generate profit.

Our government is taking different steps to increase export in agriculture sector (products) by different measures. They have introduced an incentive plans through export associations and community boards.