The government has set a $24.8 billion export target for the new fiscal year, projecting a 10.7 percent growth. The government had set $25.5 billion target for 2015-16 but could reach only $22.4 billion, with a hope to raise the exports to $35 billion in two years. The exports of the country are falling but the projected target of $24.8 billion is also not compatible with the volume of the economy or potential of industrial output in the country. The decline could have been averted as all the sentiments were in the country’s favour, including slash in the import bill due to fall in the oil prices in the international market, Generalised System of Preferences (GSP)Plus status granted by the European Union and positive impact of the investment in the China Pakistan Economic Corridor. In its latest Economic Survey, the government has admitted that the exports are falling, blaming the restive world stakes, loss of textile share to new competitors in international market and changes in the US policiesas few factors responsible for the decline.
Earlier, the Ministry of Commerce had announced a three-year Strategic Trade Policy Framework 2015-2018 to enhance exports. Unfortunately, the canvas of the Pakistani exports remained very narrow during the last few years.The major trade partners are the United States, China United Arab Emirates, Afghanistan, Britain, Germany, France, Bangladesh, Italy and Spain. At least 17 percent of the total exports go to the United States and 22 percent to the European Union whereas Pakistan’s exports to China have dropped by 8 percent in three years. Instead of taking benefits of ease in the global quota restrictions, the fall in exports should have been a matter of concern for the government. Incidentally, instead of taking some concrete steps to resolve the issue, the bureaucracy loves to burden the business community with more taxes every year. At a time India, Vietnam, Cambodia and Bangladesh have doubled their exports in volume and value,the industry in the country still faces acute electricity shortage and could not avail the opportunities in the international market.
This is the age of changing world and old tactics of the government will not work anymore. There is open competition in the international market in which Bangladesh and Vietnam are ensuring their presence, but Pakistan is losing its established markets. The government seems to be interested in short-term goals, but ignores the long-term losses. Why the government ministries are unable to study the situation is a million dollars question. The government must arrest the situation before it is too late.
