Founding chairman of Pakistan-American Leadership Center, Mossadaq Chughtai has said that declining volumes of exports is major source of trade deficit in Pakistan, mainly because of complacent attitude of the successive governments over the last two decades.
"In the last two decades, Pakistan exports and FDI only grew by 140pc and 160pc, respectively. While in India, exports and FDI saw a tremendous growth of 719pc and 1627pc," Mossadaq Chughtai said in a statement issued here on Saturday adding that this has been the trend despite phases of investment inflows and emergence of a middle class.
Even Bangladesh has fared well as compared to other nations of South Asia with exports and FDI growing by 680pc and 800pc, respectively. "In terms of 'corruption' and 'governance', India and Bangladesh are at the same level with Pakistan. The only difference is the continuity of policies," the Pakistani-American entrepreneur said.
Chughtai, who has businesses both in the United States and Pakistan, identified misdirected economic and fiscal policies as the main reasons.
He said that continuous depreciation in rupee, hike in interest rates and increase in of cost of doing business were major blunders of the incumbent government, and "as it has been proven in 70 years, when currency was devalued it couldn't revert back with a major correction".
He regretted, despite 32pc devaluation, Pakistani exports had not registered any notable expansion. "The solution to Pakistan's economic woes lies in boosting exports diversifying and expanding manufacturing, job creation and a more equitable wealth distribution that gives purchasing power to the common people,", Mossadaq Chughtai said.