"Collaboration between the private sectors of Pakistan and Italy can be equally beneficial for both the countries. Pakistan can learn from Italian expertise in economic development." The chairperson of subcommittee on Mines & Marble (Lahore Chapter) of Italian Development Committee of Pakistan Chaudhry Khadim Hussain in a statement on Monday said.
At present Pakistan is struggling hard to give a boost to its fast declining exports but focus is still on the traditional partners, he added. As a result, the gap between exports and imports has gone out of control, he said. Pakistan's trade deficit has stayed at US 9.01 billion dollars during the first quarter (July-September) of the current fiscal year as against $7 billion dollars during the same period of the previous year showing an increase of 29.75 percent.
Referring to Pakistan Bureau of Statistics, he said the imports have been increased rapidly as compared to the exports. The exports stayed at $5.17 billion during July-September of 2017-18 as compared to $4.67 billion of the corresponding period of the last year, showing a growth of 10.84 percent, he added.
Concerned officials have opted an easy way of imposing regulatory duty on 731 import-items to bring down the trade deficit but this method will be proved destructive instead of doing any service to the economy, he added.
He was of the view that Pakistan should learn from the vibrant economies like Italy. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15 percent of GDP, he added.
These activities are most common within the agriculture, construction, and service sectors, he said. Italy has moved slowly on implementing needed structural reforms, such as reducing graft, overhauling costly entitlement programs, and increasing employment opportunities for young workers, particularly women. "Historical economic stability allows Italy today to rank as one of the highest economies in terms of net wealth per capita and per household, confirmed by its low level of private debt and average financial liabilities," he said.
Italian families' savings are traditionally high and liabilities relatively low (mainly mortgages). Beyond this sound household system, Italy remains a dynamic economy, with a diversified manufacturing sector that is significantly export oriented and highly specialized, he added. It is the country of "economic districts" and several of these local areas provide a fertile environment for SMEs and start-ups, he maintained.
"The 138 main industrial districts accounted for, in 2010 included, 285,000 firms employing 1.5 million workers and commanding EURO 74.6 billion (close to $100 billion) in exports. Such districts, overall, represent around 1/3 of the whole Italian manufacturing sector," Chaudhry Khadim said.
He said that Pakistan needs to maintain strong relations with Italy. Active engagement of the businessmen and diplomatic mission of the two countries, frequent exchange of economic and trade delegations to identify the areas of mutual interest and joint trade shows can help achieving the required goals.
Keeping in view the market potential of the two countries a lot of progress could be made on trade front through boosting up the existing trade and identification of new tradable items between the two countries.
To cater to the requirements of Pakistani market, marble, chemicals, dairy products, electronic equipments, machinery, automobiles can be exported by Italy, whereas Pakistan has a competitive advantage in textile, surgical instruments, leather products, sports goods, some fruits & vegetables, rice etc, which can be exported to Italy on a larger scale, he said.
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