Export boost: WB’s economist calls for adopting proactive approach

KARACHI: World Bank’s Senior Economist Gonzalo J Varela Monday said that Pakistan needs to adopt a proactive approach for a healthy growth in exports.

Addressing the World Bank seminar on “Pakistan Development Reviving Exports” at the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Varela said that Pakistan’s export sector is facing multiple challenges.

Exploitation of new markets is a major tool to enhance the exports and many Pakistani firms have not focused on the new export markets. Pakistan needs to explore new export markets for steady export growth. “In order to expand the export market, Pakistan’s export sector also need to increase its production capacity,” he added.

Varela said that it is also important to look at how exports are reacting to rising exchange rates. It is also witnessed that an increase in the exchange rate also makes a difference to exports, he mentioned.

Discussing the imports, he said that Pakistan’s imports are steadily increasing and the overall import bill is much higher than exports.

The World Bank Economist said that there is a lot of scope in Pakistan’s exports, however, currently the share of Pakistani firms in the global market has also shrunk. Pakistan can also enhance its export by focusing sectors like services, medical services and radiology. He said that Pakistan’s domestic market is proactive, which does not increase competition.

FPCCI President Nasir Hayat Magoon said that Pakistan’s total exports are some 25 billion dollars annually, but still lower than other countries in the region. The government has set a target of $45 billion in exports in the next five years, he added. “We have not been able to take full advantage of GPSP Plus,” he maintained.

Muhammad Younus Dagha, Chairman Policy Advisory Board, FPCCI also spoke on the occasion.

Copyright Business Recorder, 2021