The government has been signing free trade agreements with various friendly countries since its three and half year tenure in the office without any visible improvement in the country’s exports. The agreements are signed to get free access to the world markets, but if the end result of the exercise is zero, there is no need to do this toilsome work. Pakistan has so far reaped very limited benefits in its preferential trade agreements with regional and other friendly countries. No doubt the regional economies, except Pakistan, are growing at fast rate, including India, Bangladesh and Sri Lanka. The human development index in those countries has also improved in the recent years whereas Pakistan could not even maintain its humble position in the index, thanks to the inconsistent policies, political instability and lack of will and ability of the government to improve infrastructure. The country is still facing severe energy crisis, the rupee value has been maintained at certain level through artificial means and the economy is in disarray despite some positive indicators.
When the country was granted GSP plus status by the European Union, it was hoped that the exports will pick up and economy will improve. But euphoria of the European market access lost in few months. The country is now struggling to maintain its current exports what to speak of its expansion in the coming years. India has successfully besieged Pakistan from three sides after signing investment and trade agreements with Iran and Afghanistan. The country is fast heading toward isolation and the so-called free trade agreements only seemed to be a paper work or a futile exercise. Prime Minister Nawaz Sharif is keeping vary vital ministries to himself. Either his political party lacks highly qualified members or he does not trust in any of his aides. The only arrow with which he aims at every economic target is Finance Minister Ishaq Dar and he has his own personal engagements. The country needs fulltime ministers to keep follow up of plans and programmes which the government initiates to improve the national economy.
The government is now going to sign free trade agreements with Turkey, Thailand and some former Russian states, but it will have limited choice to offer finished products. The country’s industry is not only facing energy crisis, but several self-made impedimentsalso. The country has also failed to produce trade surplus. The only hope for the country is the China Pakistan Economic Corridor and proposed joint ventures with Chinese investors. Currently, the government is facing protests from the opposition parties and India like a wounded animal is threatening Pakistan. In this situation, the government will have to become proactive and should prepare itself to fight on all fronts during its remaining tenure.
