LCCI underscores need for diversifying exports

RECORDER REPORT

LAHORE: There is a need for devising a well thought-out strategy to diversify exports to emerging markets as recession is still continuing in Europe and North American markets since the beginning of global economic downturn, officie-bearers of the Lahore Chamber of Commerce and Industry said on Friday.

LCCI's President Irfan Qaiser Sheikh said in a statement that the contraction in the euro zone's private sector had further darkened the prospects of a global economic resurgence and its spillover "may hit Pakistan's private sector". "Therefore, diversification of exports is the only way out," he said.

The LCCI president said that Saudi Arabia and Qatar had a lot of business potential in the Gulf region while Turkey and African region were other promising markets.  He said that a little tilt towards the African market could result in "miracles for Pakistan's economy as some of the fastest economies are still situated in the African region".

"If we do not act now, the economy runs the risk of a downward spiral of uncertainty and financial instability," he said.

The LCCI President said that an appropriate economic roadmap, backed by an implementation and monitoring mechanism, was a prerequisite to the economic revival of the country.

"The government and the private sector would have to sit together as early as possible to achieve this goal," he said. He said that the private sector had the ability to make the country a hub of economic activities.

Highlighting multiple challenges faced by Pakistan, Irfan Qaiser Sheikh said: "The economy is in bad shape. The law and order is fast deteriorating. There are issues of governance because of which we are sinking slowly but surely. He said that at international front, the country's image is plunging with every passing day. Its goods are fast becoming uncompetitive while foreign investors are reluctant to even visit this country what to talk of any investment."

He said that despite having all the resources, Pakistani businessmen were fast losing hope because the high cost of doing business because of almost daily upward fluctuation in the prices of inputs, high mark-up rates.

The cost of borrowing was beyond the reach of new investors while the industry had shelved plans for expansion. "And all this is because of (the government's) anti-industry and anti-growth policies," he said. He said it seems that some foreign elements were "active to turn this country into a trading place, instead of a manufacturing hub".

Irfan Qaiser Sheikh said that all these things have shaken the confidence of the local businessmen and there was no doubt about it that it would take years and years to restore the confidence of the businessmen who "are always ready to spend their time and money for the country".

The LCCI President urged the President, the Prime Minister, Governors, Chief Ministers and federal and provincial cabinets and all leading Chambers of Commerce to sit together and identify solutions to problems being faced by the country, as the time was fast running out. He said that if the same situation persisted, a large number of businessmen would not be able to repay their bank dues and would be bound to default.