Despite the claims by different Musharraf-led regimes over the past seven years that they were pursuing a proactive policy to diversify the country's exports, it is only now that the Ministry of Commerce has started preparing a strategy to capture the markets of the African continent that has 59 countries!
Pakistan's Roving Ambassador to Sub-Saharan Africa, Hameed A. Kidwai has been quoted in a Recorder Report as exhorting FPCCI members at a meeting to capture the African markets that have so far remained outside Pakistan's export loop. (Why this was allowed to happen by the Commerce Ministry and EPB high-ups, both past and present, remains a mystery.) Kidwai has asked the Pakistani business community to establish their offices in African countries so that they are able to tap the huge marketing potential of the continent.
Incidentally, there are only nine Pakistan embassies and two trade offices covering 41 African countries, and only one branch of a Pakistani bank in Nairobi.
According to Kidwai, a Pakistani bank that had kept its branch in Sudan functioning for 35 long years closed it down when things improved and other foreign banks also started opening their branches! Neglecting an entire continent at a time when Pakistan's export sector remains severely restricted, is quite surprising, to say the least.
One of the reasons why our cherished goal of turning Pakistan into an Asian Tiger, has remained unrealised, is the adhocism and whimsicality of the policy-making process and political instability in Pakistan. Clumsy attempts to re-invent the wheel every now and then to suit the vested interests has sapped the system of its vitality and eroded our credibility abroad, while bureaucracy's laid-back, "sab acha" approach to issues has done the rest.
In the globalized world of today, exploring and tapping new markets is as important as increasing production, because marketing is the spearhead of economic growth all over the world.
Africa, though largely poor, remains a market of immense potential for Pakistani exporters. There are believed to be some problems relating to delayed payments etc but this does not mean that an entire continent should be allowed to stay off Pakistan's export map.
A positive thing about Africa is that profits are simply fantastic there, and exporters with expertise in forex handling can achieve great success. As Kidwai has pointed out in his briefing, South Africa, Sudan, Angola, Sierra Leone and Ethiopia are endowed with vast marketing potential for Pakistani exporters.
He has rightly urged Pakistani businessmen to establish branch offices in African countries because their on-the-spot presence will help smoothen many snags that can otherwise crop up in the delivery and receipt of consignments and payments.
Secondly, our exports can gain a competitive edge in the international market only when the government enforces strict quality control over the production process. It should show no laxity or leniency whatsoever in this regard.
Thirdly, it should go in for large-scale value addition to impart to the country's exports a competitive edge in the world market. Any investment made in this direction will further strengthen the country's manufacturing base, and will pay rich, long-term dividends.
The suggestions made are important and useful that should be taken up at a high policy-making level. There is clearly a need to rethink our export strategy to broaden our export outreach. Instead of keeping the focus mainly on Western Europe, USA and Canada, our policymakers should lay equal stress on Africa and Latin America, etc let the loss suffered so far be made up through redoubled efforts.