‘Economic challenges: timely actions needed’

This is apropos a Business Recorder op-ed “Economic challenges: timely actions needed” carried by the newspaper on last Friday.

The writers, Huzaima Bukhari, Dr Ikramul Haq & Abdul Rauf Shakoori, seem to have presented an informed perspective on the economic challenges facing the country. In this regard, they have made certain recommendations, urging the authorities concerned to take timely actions without any further loss of time.

That the readers of this write-up can feel the urgency in their articulation is a fact. Having said that, I wish to state that I do not agree with their take on the country’s exports for certain reasons.

They have, for example, argued that “Pakistan is still relying on orthodox methods to boost its exports and expects $30 billion in forex during the financial year, which is nothing but peanuts compared to its imports.”

The learned writers seem to have lost the sight of the fact that ours is not an export-oriented economy at all. We have consistently failed to diversify exports and discover new markets. Secondly, higher exports will surely lead to even higher imports in view of near absence of key raw material required by export-based industrial units in the country.

For example, the curbs on imports necessitated by falling foreign exchange reserves in fiscal year 2022-23 have caused an adverse impact on the growth of exports. Increasing exports in a sustained manner will require us to deeply study the economic models of the developing countries that have successfully attained significantly higher levels of exports.

This will also require us to not only diversify our export goods, but also discover new destinations. Moreover, a meaningful growth in services sector can add to our overall quantum of exports in a big way.

This is quite doable. But implementing the plan aimed at enhancing the competitiveness of country’s services exports is likely to be a long haul.

Naseer Haider (Karachi)

Copyright Business Recorder, 2023