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Home Op-Ed Editorial

Potentials of domestic trade

byDr. Aftab Afzal
09/05/2017
in Editorial, Latest News, Op-Ed
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According to newspaper reports, domestic commerce contributes 32 percent to the gross domestic product of the country and creates 20 percent jobs for the labour force.However, lack of awareness, official lethargy and underdeveloped infrastructure are a few troubles which hinder the promotion of trade activities in various parts of the country.Pakistan is a country of 200 million people, but has a vast area where means of transportation still need improvement and infrastructure still needs development. After the drastic amendments to the constitution, the four provinces and the federal territories are like countries and inter-provinces trade needs to be enhanced instead of relying fully on the international trade. Though trade among the provinces is going on at various levels, but what all is happening are the individual efforts. The cities of Punjab, Lahore, Gujranwala, Sialkot, Gujrat, Multan, Faisalabad and Wazirabad have emerged as the industrial hubs of the province. Businessmen from Karachi, Hyderabad and Sukkur of Sindh province are engaged with traders of these cities, but benefits of mutual trade are not fully reaped.

The government had created Domestic Commerce Wing four years ago to reform and develop trade activities within various parts of the country. The wing was mandated to develop terms of reference and guidelines to evolve a uniform national policy for domestic commerce.Reports claim the development of domestic commerce would help produce export surplus and many developing countries have concentrated on the development of domestic commerce. But domestic trade needs to be streamlined. The Commerce Ministry was quick in establishingthe domestic trade wing, but had failed to devise a comprehensive policy for the promotion of domestic business and trade. Reports suggest Ease of Doing Business Index 2017 still places Pakistan at 144 out of 190 countries,which is a point to ponder for the policymakers. Economists fear the lack of coordination within provinces to develop trade links could lead to economic depression in certain areas. The domestic commerce is the ignored sector in the government priorities as all its focus is on the promotion of international trade. The government has also failed to shift or develop the commercial areas in cities like Lahore and Karachi to vast business and trade zones. The big markets in big cities are congested and lack of parking has created severe problems for the buyers. The relevant government agencies have failed to implement building laws and this creates bedlam in commercial areas during peak hours.

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There is a need to establish new trade hubs away from the busy and congested city roads in every province of the country. Until the provinces assert their writ under the 18th amendment, it will be difficult to stimulate and boost in-country trade.

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