Reality bites

This refers to the news report ‘Exports to increase up to $28 bn by end of current fiscal’ (Oct 12). Since the last two years, the government has been showing optimism when it comes to exports. However, actual results show that the country is failing to meet its targets. Even during the first quarter of the current fiscal year, exports remained stagnant. This is concerning as the country signed a new Free Trade Agreement (FTA) with China in 2019 that provided Pakistani products with the duty-free access to the Chinese market. The government has also given fiscal and other incentives to exporters. The reason for the failure of Pakistan’s exports is simple. Its agriculture has been underperforming and its manufacturing activity has been sluggish. There is not much surplus available for exports. Additionally, the high cost of doing business is adding to the woes of exporters as they are not able to compete with their counterparts in other countries.

The export target of $28 billion will remain a distant dream without a comprehensive export policy that envisions tapping not only the traditional markets but also exploring newer markets across the globe. Also, there is a need to introduce new products for exports. The government must go all out to revive the agriculture sector for producing surplus farm products to boost the export sector. It should also provide some assistance to its manufacturing industries so that they can produce high-tech and superior-quality products.

Arif Majeed

Karachi