Pakistan's economy depends on exports as the country needs the money it earns from exports to pay off debt, maintain currency stability, and address the ongoing imbalance of payments issue. A nation's exports should not only be competitive but also conform to quality standards and market trends, as well as be certified to meet international standards.
One of the main causes of Pakistan's low export growth during the past ten years has been a lack of investment. Higher tariff structures, unpredictable development patterns, little market penetration internationally, a lack of infrastructure, and advances in technology are some other causes. Additionally, the government's illogical policies and the intricate incentives provided to businesses hinder exports. To maintain a competitive edge, other rival Asian nations have focused on export-driven growth methods that have led to fast industrialization and high rates of savings and investment.
There are so many ways through which we can increase the overall exports of a country. Trade portal in Pakistan and B2B platforms play an important role in boosting the exports of a country.
Pakistan must make use of its exportable goods and services that demand little in the way of infrastructure or capital. For instance, the need for software and IT solutions is rising on a worldwide scale. Establishing a software house is less complicated than setting up a manufacturing facility.
Pakistan is blessed with mines and mineral reserves. The Pakistani mining sector has the potential to grow to USD 1 billion in revenue yearly. To assist exporters in realizing the full potential of online marketing platforms, the SIFC & Trade Development Authority of Pakistan (TDAP) has to take note of this rapidly evolving market and make use of big data and artificial intelligence (World Bank).
There are around 3.3 million small and medium-sized businesses in Pakistan. These might include manufacturing facilities, startups, and service companies, among many more variations. Over 30% of Pakistan's GDP and roughly 25% of export revenue are produced by SMEs. Policies that empower SMEs and enable them to realize their full potential are what we need. To fully realize the potential of SMEs, it might be appropriate to start by providing them with access to financing, readily available subsidized credit, reduced interest rates on loans, LTFF for the import or purchase of machinery, and programs for skills development and training.
The government should encourage the slogan; Made in Pakistan, Grow in Pakistan. For that, policies should be implemented for the betterment of the export industry. The government needs to streamline export regulations, as onerous bureaucratic processes have a detrimental impact on nascent exporters. Governments should also do a better job of gathering and disseminating information about overseas markets and exporting needs.
Through promoting job possibilities and helping others find work, entrepreneurs foster a positive cycle of prosperity that benefits society and the economy. Boost the technological content and productivity of homegrown goods, encourage innovation through rewards, and raise the competitiveness of Pakistani exports abroad. For such to occur, we must give entrepreneurship full attention. According to the UNDP National Human Development Report, Pakistan's skilled unemployment rate among college graduates is 20%. The "educated" make up a sizable share of the unemployed population, yet unemployment rates are still high. Pakistan is unable to achieve the economic gains necessary for economic expansion with the current employment situation. Prioritizing the facilitation of business in Pakistan is vital in fostering innovation leading to superior and varied products and services.
The government of Pakistan is now giving so much importance to the export sector. For that purpose, SIFC and export portals play significant role. By implementing new initiatives, the country’s economy will be improved and will be able to achieve the desired expected economic goals.
