The Chairman Export Sub Committee, Karachi Chamber of Commerce and Industry (KCCI) Shahab Ahmed Khan has urged the government to establish an agriculture development authority in the country to boost up the sector.
In a communication, Shahab said the establishment of an agriculture development authority would boost up the agri-products exports, which would consequently improve the economy and help in alleviating poverty and unemployment in the country; and particularly in controlling the rising trade deficit. He said despite being an agricultural country primarily, our agriculture sector's contribution in the economy is a mere 21.8 percent as compared to the 24.3 percent and 53.8 percent contributions of the industrial and services sectors respectively.
Shahab said the agriculture sector in Pakistan is going through severe problems and challenges including: the shortage of water, energy crisis, proper resource utilisation, effective quality control, lack of value addition and economic problems, which needs to be resolved at the earliest by providing the requisite knowledge to the exporters. He emphasised that knowledge regarding the introduction of new crops, irrigation system, new land ownership approach and construction of new dams, should be imparted to all the concerned people.
Shahab noted that 47 percent exports of Pakistan comprises of only five major commodities which are rice, cotton yarn, knit wear, cotton fabrics and bed ware, despite having enough potential in other areas that can play a major role in improving Pakistan's exports.
Describing the problems of exports in the country, he said the exports are going through liquidity problems, particularly small and medium size exports, along with high utility tariffs, frequent power failure, complex legal procedures etc, which are creating hurdles in the activities regarding exports. He further said that due to the high costs of productions, the Pakistani products are being outpaced by their competitors in the international markets, which is discouraging foreign investments in the country.