Ramp up exports ( Part - II )

The strategy I propose aligns with a National Export Vision, echoing the principles of a sovereign, progressive, and efficient welfare state. The short to medium-term mission statements encompass prioritizing export-led growth, focusing on existing export sectors, progressively adding new products and services, identifying and leveraging challenges and opportunities, ensuring effective implementation through federal and provincial structures, and fostering a culture of understanding and recognition among stakeholders.

A SWOT analysis of Pakistan as an exporting country forms the bedrock of the proposed strategy. In summary, the strategy I propose underscores maximizing market shares of ‘traditional sectors’ and ‘developmental sectors’ in the respective top 30 countries, with a specific focus on existing markets and gradually expanding into new ones.

For services export, I have focussed only on IT and tourism for aggressive growth in the next five years, with a target of $20 billion per annum.

Geographically, the strategic emphasis must remain on traditional markets, including the US, EU, Mid East, Iran, Afghanistan, and China, while a 'market storming' approach is recommended in the short term, for the underperforming but potentially lucrative markets of Africa, Central Asian Republics, and Russia.

Implementation framework: The major challenge for Pakistan has been its ability to implement. My view is that the core reason for this is the implementation structure. I have proposed an organizational structure, both within the government and the private sector, which aims for an integrative approach.

The export drive must be led by the prime minister. He can ‘demand’ maximization of effort by the private sector and timely and high-quality implementation while the Ministry of Commerce, as at present, can only ‘request’. The PM must dedicate just two days in a month for interaction with major exporters of the strategic sectors and matters arising of exporters' needs vs delivery. If we believe forex deficiency is critical and if we believe that exports are the panacea I feel it warrants two days in a month of the prime minister. The message this gives to the nation will be an amazing catalyst.

For the organization, I propose a federal exports secretary, based in the PM’s Office, to spearhead the PM’s Export Secretariat, with the Ministry of Commerce providing policy and strategic inputs and TDAP the implementational essentials. The forum at the national level should be the Federal Export Development Board restructured to include chief secretaries of each province, which ensures a coordinated effort of all stakeholders. The secretariat of this board should be the PM’s Export Secretariat. Immediate capacity building and autonomy of TDAP is essential, along with the SIFC/Board of Investment's role in attracting export-oriented investments.

At the provincial level, PED Boards must be established ensuring a streamlined approach at the regional level in sync with the National Strategy developed by the Ministry of Commerce in consultation with all stakeholders. Local chambers of commerce and trade bodies should be included in PEDBs.

At the trade level, we must energize chambers and trade bodies to effectively understand the facilitative needs of exporters and ensure delivery. Their approval as trade bodies should be subject to effective management of this service. The Pakistan Business Council is emerging effectively as is the textile council. These may be leveraged.

Facilitative initiatives: What I am proposing goes beyond a mere theoretical framework. It outlines concrete policy and facilitative initiatives spanning export eco-systems – product development and value addition, manufacturing space/expansion facilitation including technology and environmental management, certification and compliance of national and international standards, marketing and promotion, payables and default management, finance, liquidity including recovery/refunds of all taxes and duties on exports, risk management, logistics, and infrastructure.

Export culture: As Peter Drucker says, ‘Culture will eat strategy for breakfast’. Strategy provides scope and direction, but culture is the habitat in which strategy either dies or lives. This must be managed and current misgivings between the private sector and government be minimized through better walking the talk by both sides.

Culture and performance can be significantly strengthened by appropriately and finely designed and implemented rewards and recognition programmes. These must not only be for exporters but also related public-sector stakeholders. I have proposed such initiatives for exporters aimed at ensuring that success is measured not just in terms of export value but in cultivating new customer bases and market penetration etc.

So what next? For what I have proposed to be made effective I have provided an action matrix in the more detailed paper I’ve developed. I must record my appreciation of Dr Moeed Yusuf and his team at Beaconhouse University for their help in developing this matrix.

The matrix delves into a step-by-step implementation plan. It calls for the establishment of a dynamic institutional mechanism within the first two weeks of the formation of the government. A comprehensive strategy, aiming for a $100 billion export goal, is to be formulated within 45 days, ensuring a swift and strategic approach. Policies for the IT and tourism sectors, trade alliances, and mechanisms for strengthening export-related institutions are slated for the first 90 days, setting the tone for an intensive and strategic tenure.

Concluded

The writer is a former minister of state and CEO of TDAP.