As trade deficits are rising, the government has failed to find a way out to increase exports. The cost of doing business has been increasing in the country for the last three years with announcement of federal budget and a trail of mini budgets, putting more pressure on the beleaguered industry. Unfortunately, there is no one to find the reasons behind the bleak performance of the Ministry of Commerce and Trade Development Authority of Pakistan, which are mandated to encourage commercial and export activities in the country. The two vital departments are not facing financial wherewithal as the officials are drawing hefty salaries and perks without offering anything in return. The Pakistani products are unable to compete in the international market. Experts also blame the government’s halfhearted tax measures responsible for slowing down of the industrial output as the business community has to concentrate more on tax matters than their business issues.
The government must understand that export promotion policies, such as arranging exhibitions in foreign countries and exploring markets in new destination only work when industrial sector is strong. But the president situation is pathetic as the industry is not only facing energy shortage but also pressures from different government agencies. Pakistan has very poor record in ease of doing business index. Development in the industrial sector will also offload pressure on the Pakistani rupee which some businessmen claim is overvalued buy 20 percent. The government has done a good job by sustaining the value of the national currency otherwise the economy would have collapsed. As a matter of fact, underproduction of the national industry is the root cause of trade deficit. There is no dearth of foreign clients as conducive environment is prerogative to attract foreign business, trade and investment. The government also needs to revise its free trade agreements with some countries which are direct opposite to the national trade policy. Working conditions and business ethics change with the passage of time the policymakers must adopt realistic approach in this situation.
The country’s import are increasing which can only be regarded as a positive sign if exports also increase. Import is a facility which needs not be misused as some industrialists do by getting their product manufactured in China and import the same under their brand names. There is a need to bring finance ministry, commerce ministry and the Federal Board of Revenue on the same page. The State Bank also needs to carefully monitor the financial condition of the industry and help devise a prudent export policy. So far, the government is concentrating on the export of traditional goods whereas the time is to introduce value added products in the international market.
