President of the Lahore Chamber of Commerce and Industry (LCCI) Ijaz A Mumtaz has said that only market and product diversification can help us to make our way in the global market. While talking to a group of exporters here at the Lahore Chamber on Wednesday, Ijaz A Mumtaz said that despite having all resources to move forward, it is a matter of concern that we are still struggling to achieve the export target of $25 billion while those countries are far ahead of us which were following our economic role model.
According to the LCCI Chief, Pakistan's exports base is extremely limited and concentrated in five products namely cotton, leather, rice, synthetic and textile. More than 60% exports earnings are contributed by the textile industry while 15% of total exports contributed by leather, synthetic made ups and rice. Now is time to diversify our businesses and have to add new products to attract maximum foreign buyers for Pakistani products.
Mumtaz stressed the need for developing regional, product specific and target-oriented marketing strategy. He said that new markets and new products need to be explored to reduce country's dependence on few commodities and countries. He said that Pakistan's exports are highly concentrated in few items. Such concentration in few markets can also become a source for instability in export earnings. "We should move towards higher value added to increase our exports." He also urged the exporters of textiles, leather, rice and sports goods to develop their own brands to win the international market. 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.
The LCCI President said that the promotion of regional trade also offers promising benefits to the industry as it would enable it to source raw materials from the region that would ultimately reduce cost of production and create opportunities to improve economy of scales by having easy access to neighbouring markets on the other hand. He said that a freer movement of the businessmen can transform this region into a bloc like European Union where the people remain in peace like as a family.
He said, "Pakistan has lost momentum but it has ability to bounce back as it has over 50-per cent of young population, 12 percent of known global natural resources, and all prerequisites to become a developed nation. South Asian countries have the opportunity to re-think and pursue new sources of growth in both domestic and external markets."