Pakistan needs non-conventional strategies and to be an effective part of the international economic alliances to win the "international trade war". Lahore Chamber of Commerce and Industry (LCCI) President Malik Tahir Javaid Friday said Pakistan's exports are nothing as compared to the available resources.
While quoting trade statistics, he said Pakistan's exports and imports remained $23.2 billion and $60.86 billion during July-June 2017-18, respectively while these were $20.42 and $52.91 billion during the same period of 2016-17. He said that though exports have risen during July-June 2017-18 as compared to July-June 2016-17 but these are not satisfactory.
He further stated that little increase in exports during 2017-18 has never affected economy positively as trade deficit has also jumped from $ 32.48 billion of July-June 2016-17 to $37.64 billion during corresponding period of 2017-18. "Good moves have to be taken as Pakistan's exports are hazardously low despite the fact that country has all resources to become an "Export Power House," he added.
The LCCI chief accounted lack of value addition, poor marketing, least interest in accessing new markets for Pakistani merchandise, high cost of doing business and bureaucratic hurdles for below-the-level exports and called for rectification measures. A major part of Pakistan's exports, particularly minerals, are in raw shape which is causing huge loss to the national exchequer as finished goods can earn more foreign exchange than the raw materials. He said that this target can be achieved through investment in technology, skill enhancement and research and development.
He underlined the need for good marketing techniques to dig-out large number of foreign buyers for Pakistani products which are best of best quality in the world but are struggling due to lack of proper marketing. He urged the Pakistan's Foreign Missions abroad to establish display centres for Pakistani goods besides organizing single country exhibitions for Pakistan products to secure due place in the global market.
"Display centres for Pakistani merchandise as well as cultural centres can highlight the industrial strength of the country around the globe while cultural centres would attract the foreigners to discover beauty and heritage of this beautiful piece of land," he opined.
He said that they days are gone when foreign missions were working for just diplomatic relations. Now foreign missions of the developed countries are playing the role of "Economic Ambassadors" for their respective countries. He said that Pakistan's diplomatic relations would world would automatically strengthen with strengthening of trade and economic relations.
He said market and product diversification can lead Pakistan to make way in the global market, adding Pakistan's exports base is extremely limited and concentrated in five products namely cotton, leather, rice, synthetic and textile. "More than 60 percent exports earnings are contributed by the textile industry while 15 percent of total exports contributed by leather, synthetic made ups and rice," he maintained.
He also urged the private sector, not only to concentrate on promotion of regional trade that is more efficient in terms of cost and logistics but to explore huge untapped African market. He said Pakistan occupies a strategic location and has ability to act as a major player in transforming the region into a trade and manufacturing hub. The promotion of regional trade also offers promising benefits to the industry, he added.
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