As attempts to increase exports fall flat on their face and the local industry cries foul over several reasons, the country may impose tariff and non-tariff restrictions to discourage Indian imports. Pakistan may also look towards giving incentives to its exporters, aimed at enabling them to compete with Indians in the global markets.The move comes at a time when India and Pakistan, neighbours and archrivals over one reason or another, are not enjoying the best of times in their love-hate relationship. While border tension keeps the defence personnel occupied, Pakistan’s exporters and market players took this as an opportunity to have the government consider placing restrictions on Indian imports. With Pakistan struggling to increase exports amid slowdown in the global economy and competitiveness issues, tariff and non-tariff restrictions are the cards being played by industry players to further their cause. A high-level huddle, comprising almost all the key government ministers, top bureaucrats and representatives of industrialists, gathered in the federal capital on Thursday to review various options to revive the sinking industry. There is no denying that over time, the law and order situation, the persistent power crisis and the stuck refunds with the FBR have hurt exporters. After investing billions in machinery and labour, it must be excruciating for industrialists and exporters to see their plants sitting idle while they wait for power. But the arguments they advance should not be seen in a vacuum. In formal bilateral trade with India, Pakistan’s share stands at around 20 per cent. Numbers don’t lie, but, in isolation, they can be highly misleading. Comparisons with India should become a thing of the past. The Indian economy has grown exponentially and so has the competitiveness of India’s exports. Even Bangladesh has edged Pakistan out.This hasn’t happened overnight. Pakistan, despite boasting of its textile exports and the GSP Plus status, has been left behind because it hasn’t given world markets anything new to offer. With the emphasis being on textile exports, it is interesting that the value of these items sent abroad compares poorly with what the country spends on its imports. This is because our exporters have always kept value-addition and exporting finished goods on the back burner. International markets have become competitive and Pakistan hasn’t. It is as simple as that. Exporters can be given all the incentives and protections they demand, and the value of our exports will still not increase, not even in the long term. Imposing duties on imports of countries citing patriotic and emotional reasons will not increase the country’s foreign exchange revenue. The exporters and the government must realise this.
pk.shafaqna.com
