Bangladesh is a role model for developing economies which increased its exports beyond $30 billion in 2017 despite having the size of the gross domestic products half of Pakistan. Bangladesh is not a cotton producing country, but has emerged as the second largest textile exporter in the world. On another note, Pakistan has all the resources, energy and ability to create industrial surplus and enhance its exports. Experts believe tax concessions, diversification of products and exploration of new markets, are a few components to increase exports. Bangladesh has concentrated on the textile manufacturing sector which has become the engine of growth for its economy. The world is heading toward unification and restriction on imports is not a solution to the rising trade deficit in Pakistan’s case. The management and administrative failures of the government are visible, but no effort has been made to fix the matters. The country urgently needs structural reforms not only in the bureaucratic affairs, but also in other sectors of the economy. Investors, whether locals or foreigners,are shy of investing in the country. They need concessions on the import of parts and machinery as well as tax relief, but in a country where starting a business isitself an uphill task, how much it will attract investments in prevailing conditions can be any body’s guess.
The first thing first is that the country needs for a paradigm shift in its economic and financial policies as well as structural reforms. The aged old methods of administration and management have lost their utility with increase in the size of the economy and the population. The new administrative units are needed to be established to implement the writ of the government, but closing the eyes to understand realities are adversely affecting the pace of development. Still the policymakers prefer to export food items whereas the country is heading toward food scarcity. Unless the policymakers focus on the export of value-added goods, the country will have to face tough competition from its peers in the region. According to reports, Pakistan received lower prices for clothing items from the European Union as compared to their regional competitors and this should be an area of concern for those who matter.
The prime minister has already announced an export package, but economists believe mere injection of money in the export sector is not enough. The country needs reforms but no one has the time to think over this crucial issue at any stage. One can only hope that God bless this nation which is at odds with itself.
