Make in Pakistan (Yes to Pakistani Products for Self Reliance)

TEXT: Chairman, Salt Manufacturers Association of Pakistan Established on 14th August 1947, Pakistan established its foothold in the South- Asian subcontinent, after an extensive struggle for a separate homeland. As supported by abundant researchers, one cannot argue of the geo political importance and latent potential of the Islamic republic of Pakistan, but despite numerous possibilities it is also a known fact that one cannot expect development without a proper implementable strategy. The economy has faced several economic challenges that were rather expedited by the inauspicious pandemic of 2019, whose effects have lingered on towards the economic structure of Pakistan to date, along with numerous challenges in the name of economic and political instability over time, due to which the business community of Pakistan is forced to contend a position that is onerous to tackle.

Pakistan at this moment is coming to grips with its highly volatile economic environment. As much as, one could emphasize the situation of the country can be controlled by focusing on the aspect of Bilateral trade and indulging in self-reliance. The concept of Bilateral trade, as we know, flows two ways not just one, involving the flow of products on both ends. Pakistan has done a splendid job of increasing its bilateral trade but on what end, is the concern. Our country since the past few years has been importing almost double of what it exports. Despite the constant stagnancy, we have reached the highest balance of trade deficit in the year 2021, having a value of -44.23 Billion US$, out of which we had an amount of 73.11 Billion US$ in imports relative to an exported value of 28.88 Billion USS. Despite a rise in exports, our country has managed to increase its imports higher than the export value, due to which our balance of trade deficit is also at its peak in the FY 2020-2021, considering the last five years’ data. Analyzing a little more deeply, over all the country has exported only 40 % of the value imported in the recovering period of 2021, following the novel Corona virus.

The ultimate agenda, for the economic recovery in Pakistan is dependent on the balance of trade deficit where our country still seems to be behind by a rounded off 50%, which in a practical sense is not at all healthy for a developing economy. Moreover, rapid industrialization and provision of cheap energy to the industry can also contribute to the needed cause. Despite the damage, one could start analyzing the possibility of a loss and the accommodation of change on an individual level but more than individuals the regulatory bodies of any country can turn the situation around with a simple yet systemized strategy. As always, the consideration and analysis of important entities in this regard will play a very vital role in establishment of sustainable systems that will build the trust of business communities in the region to foster growth and development on their end.

Ismail Suttar

President Employers Federation of Pakistan

Copyright Business Recorder, 2022