The Pakistani exports are falling and the euphoria which gripped officials and business circles of the country two years ago after gaining duty-free access to the EU market has evaporated. The business community blames the government for increasing cost of production as the countries in the region offer the same quality products at low prices. The government holds the economic slowdown in Europe and low quality of products responsible for the declining trends. However, the fact remains the country needs to revise its economic, trade and business policies. The world is changing at a fast rate and depending on old methods and offering traditional products for exports will only bring failures and disappointments. If the government wants to include this nation into the list of developed countries, it will have to change the perception of the economy.
According to European Union Ambassador to Pakistan Jean Francois Cautain, if Pakistani business community wants to take full advantages of the GSP Plus, it will have to break away from the past trade stereotypes and should concentrate on opportunities in sectors other the textile and leather. The businessmen should understand that business ethics and standard are different in Europe and they have to diversify their products. The ambassador correctly pointed out the trouble areas which are not only causing decline in exports but also causing to lose the European market. The government should have to facilitate exporters and the business community should have to look beyond the textile and leather sectors. The ambassador also advised the government to develop its value added sectors as the country will continue to enjoy GSP Plus status for another eight years. The country also needs to develop infrastructure and encourage the business community to invest in potential sectors.
It should be noted that textile exports registered a decline of $1.21 billion during 2014-15 and further lost $1.37 billion in the first five months of the current fiscal year.The cause of concern is that many regional countries have enhanced their exports volume up 20 percent in two years, but Pakistan could obtained only a meager share of the business in the European market and the government and business community are still unprepared to find the fault line.The drop in exports is big question mark on the ability of the country to take advantage of trade and business opportunities. Pakistan has abundantly acquired a negative image in the world due to terrorism and extremism. The government has to fight on three fronts – it should mend the ways of government officials to control corruption, enhance business to business contacts with other countries and promote the soft image of the country.
