EDITORIAL: Planning Minister Ahsan Iqbal’s claim that the government was striving to turn Pakistan into an export hub might take a while to come true, given that exports dropped 12 percent in the first 10 months of FY23, yet a lot of good work can be done in the short term to enable this long-term vision.
The first thing an export hub needs to do is establish itself as a trans-shipping destination. And Pakistan’s fleet and ports are not nearly up to the mark or enough in number to get the job done. So, at least one focus area for the government’s capacity building drive is easily identifiable and crying for attention.
There’s also a need to shift from exporting surplus production to targeted production for exports of goods and services. Sadly, the only time an export-market-hunting exercise was undertaken seriously was when Gen Musharraf was president, and a so-called dictator went around the world to do what elected governments never turned their attention to; finding new trade markets for the country’s industry.
There are deeper issues as well. For example, halal meat is a fast-growing business in Europe, but Pakistan is unable to exploit it to its advantage because it fails to meet their safety standards.
They demand pedigree meat to rule out disorders like foot and mouth disease, etc., and it’s no good to have surplus halal meat to sell to the EU (European Union) if you don’t have necessary certifications for export. Processed meat trade, too, while not a very technical subject, also requires similar certifications to be of any commercial value.
This triggers the old debate that it’s no longer enough just to have skilled labour. You also need it to be certified in order to fetch export revenue. This is not something that needs foreign loans and grants.
All that is required is political will to push formal programmes through relevant ministries to add further value to the skilled labour force and earn more revenue for the country.
If it takes smart decisions and moves in the right direction, Pakistan can not only export and earn more but also export more skilled labour to the world and beef up remittances; another strong pillar of this country’s current account.
While lobbying for such reforms and ideas, the planning minister should also put the spotlight on the opportunities that are being wasted. The SEZs (special economic zones) that were part of CPEC (China Pakistan Economic Corridor) got nowhere because of the government’s own inaction and paralysis.
All they have done is increase land prices astronomically around those areas, pushing them out of reach of the common man. There’s already a lot that can be improved without wasting too much time.
The minister is right to focus on exports despite the dismal performance numbers. The biggest reason that the country was struggling until recently with the prospect of default is that it could never export and earn enough to stand on its own feet; hence all the loans that now need to be paid back with a lot of interest.
All parties make tall promises about exports on the campaign trail, but nobody has done a thing about them so far. Even a historic collapse of the rupee barely nudged them to the upside.
So, there’s no doubt that the export policy needs to be reset. And it will involve everything from production to shipping, including careful diplomacy. Only then can we begin to take the first baby steps on the long journey towards realising the government’s vision of making Pakistan an export hub.
Copyright Business Recorder, 2023