Pakistan’s export sector has been under performing for the last four years since the present government took over in 2013. Strangely enough, corruption was apparently rampant during the previous Pakistan People’s Party government, but exports picked up to a comfortable level of over $25 billion. The Pakistan Muslim League-Nawaz, which contested the election on the slogan of business, business and business, has failed to control falling exports. During the period in question, Bangladesh exports crossed Pakistan and that country has now been regarded as the second largest garments exporter in the world. Irony is that Bangladesh is not a cotton producing country. Pakistan produces one of the best cotton in the world, but its production also reduced last year and the local industry had to import it from India. The textile sector of Pakistan contributes nearly 60 percent of the exports with a small share of merchandised exports.The country’s merchandised exports stood at less than one percent. Keeping in view the current political situation of the country, experts fear the export sector will not be able to utilize the Rs 180 billion funds announced by the government to enhance exports. Instead of raising exports, the country has doubled the size of its imports, creating a huge trade deficit.
Pakistan is situated in a region which will have more than a quarter of the world’s youngest workforce by 2030. The human resources are the asset rather a burden and it can seize the opportunity of its dynamic demography to become the world’s top manufacturing hub. Efforts must be taken to increase productivity and improve firm competitiveness.World economist consider South Asia as the next powerhouse of trade and economy with vast human resources. However, illiteracy, mismanagement and corruption are the biggest enemies of all the countries in the region. Instead of fighting corruption and poverty, a major country is involved in all kind of misadventures to destabilize the political and economic environment of the SAARC region. How peace and stability can be ensured when the next door country is involved in conspiracies and terrorism in the internal affairs of others. That is the reason the countries are focusing more on the defense spending than economy. The countries in the region lack research institutions and have failed to introduce a single brand of their own in the international market.
Pakistan still has focused its attention on the export of traditional commodities and could not made visible progress in the export of value added goods. As a result, the best quality food items and fruits are exported at throwaway prices in foreign markets and low quality yields are available within the country at exorbitant rates.
