The Pakistani exports have been experiencing free fall for the last three years and the government is still undecided to take a decision to stop this trend and control the growing trade deficit. Pakistan is a land of 200 million people who need houses, food, clothes and many many other necessities of life. The demands of the people give impetus to industrial growth and when industry faces overlapping taxes, inconsistent policies, energy crisis and unavailability of raw material, it nosedives. This is what is exactly happening in Pakistan where trade is booming but industrial output is shrinking, lending opportunities to foreign players to fill the gap. The Chinese goods are in abundance everywhere in every market. But it could be good argument that Chinese goods are available in every country in the world. However, they would not affect the local industry in anywhere including Pakistan if local industry is supported to face the challenges. The Chinese industrial development should not be taken as rival but an effort should be made to make close business-to-business liaison between entrepreneurs of the two countries. Pakistani entrepreneurs should adopt Chinese technology, but diversification is necessary as did Japan during its initial days of industrialization.
Unless the government sets its targets and launches a full-fledged industrial overhauling programme, there are little chances to create industrial surplus and increase exports. Pakistan is equipped with human and natural resources but their proper use is absent in the government priorities. The stability of the economy would not come through cosmetic steps but realistic approach is required to inspire the industrial activities, generate employment opportunities and increase investment in the production sectors. The Pakistani commercial missions abroad are marred by bureaucratic lethargy and needed to be prodded. The energy situation has also not been improved to comfortable level as yet and this is a stumbling block in the way of development.
Pakistan is traditionally an agrarian economy and cotton is a major product of the country which caters to the need of the textile industry. The textile industry covers 57 percent of the country’s exports. However, the textile exports recorded at $11.625 billion in 2014-15 dropped to $10.3 billion in 2015-16 as hundreds of textile units have been closed. In contrast, the textile exports of non-cotton countries increased during the same period. Pakistan has lost major markets of its products to the regional competitors. The government has been kept continuing various pressures on the industrialists through various organs of the government machinery.
For the development of the economy, trade doesn’t work alone as various other factors also contribute to it. Still opportunities are unlimited for the development of the industrial sector if government adopts practical policies.
