Pakistan’s exports have plunged to a four-year low of $23.9 billion in the recently ended financial year – missing the target by $3.1 billion and tattering the much-trumpeted ‘Vision 2025’ that promises six times increase in exports in the next 10 years,. The country exported goods worth $23.9 billion during the last financial year 2014-15, which were $1.3 billion or 4.9% less than the previous fiscal year, reported the Pakistan Bureau of Statistics (PBS) on Thursday. It was a poorer performance compared to Pakistan Peoples Party’s (PPP) last year in office, which is generally considered as a bad year in terms of economic policies and governance. In the last year of the PPP government, the exports had increased to $24.5 billon. It was also the lowest number since 2011-12 when the country had exported goods worth $23.6 billion.The country’s exports are falling at a time when its regional peers are increasing their shares in global trade. Pakistan’s exports amount to only 0.15% of the global receipts from exports.As the rest of the world witnesses a decrease in prices of commodities, Pakistan’s exports of these have witnessed a plunge in value. But the economic survey continues to criticise the country’s export trend by saying that a narrow base, unexplored markets and focus on the EU, the US and the UK — where a slowdown in economic activity has occurred — have led to stagnant growth. The country’s inability to produce value-added goods, the increase in the cost of doing business, the energy crisis and a lack of research and development are core reasons for the stagnant level of exports. Exporters have also been unable to create brands out of their products. Maybe now that the government has averted a balance of payments crisis — with the help of donors and lenders — it can get down to increasing the export base. It needs to focus its attention on exporters and institute measures that incentivises them to invest in brand development, research and explore markets other than the traditional ones.
pk.shafaqna.com
Pakistan’s exports plunge into new low: Pakistan needs to expand its market
