Arooj Zulfiqar

Pakistan needs a long-term and well-articulated policy to enhance and diversify its exports, and attract foreign direct investment (FDI), said an expert. “A comprehensive export policy holds key to unlocking economic growth, attracting investment, and bolstering the manufacturing sector. With a strategic focus on international trade, Pakistan can tap into its potential as a competitive player in the global market,” said Uzma Zia, Senior Research Economist at Pakistan Institute of Development Economics (PIDE).

Pakistan’s exports of goods shrank for the seventh month in a row, dipping by 14.76% on a year-on-year (YoY) basis to $2.36 billion in March 2023, reflecting fear of massive layoffs in the export sector. During the first nine months (July-March) of the current fiscal year (2022-23), exports were down by 9.87% to $21.04 billion from $23.35 billion during the corresponding period of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

Uzma said export profits were declining due to internal and external factors, including fears about the closure of textile and clothing factories. She said one of the main reasons for falling exports was the exchange rate instability. “Pakistan needs a well-crafted export policy to attract FDI. A predictable and favourable business environment and policy framework can instil confidence in investors,” she explained.

She said that streamlined export procedures, transparent regulations, and investor-friendly incentives will serve as magnets for capital inflows. “By focusing on infrastructure development and providing targeted financial support, policies can facilitate the establishment of new businesses, promote expansion, and create job opportunities. Such an environment will stimulate economic growth, strengthen Pakistan's position in the global economy, and enhance its appeal as an investment destination,” she said.

Uzma said a comprehensive export policy must prioritise the growth of the domestic manufacturing sector. “By offering incentives, such as tax concessions, subsidies, and access to financing, the policy can spur innovation, increase productivity, and enhance the competitiveness of local industries,” she added. An effective export policy is vital for enhancing Pakistan's competitiveness on the global stage. By providing comprehensive support, including market intelligence, trade promotion services, and export financing, the policy can empower businesses to identify new markets and capitalise on emerging opportunities.

Furthermore, active participation in international trade fairs and exhibitions can help showcase Pakistani products and services, foster networking opportunities, and facilitate strategic partnerships. Strengthening the competitiveness of Pakistani businesses will not only drive export growth, but also improve the overall performance and reputation of the nation in the global marketplace.

Credit: Independent News Pakistan-WealthPk