AVN Report
ISLAMABAD: Dr Nadeem-ul-Haque, the Vice Chancellor of PIDE, has expressed concerns regarding Pakistan’s trade deficit and underscored the need for enhancing export competitiveness to foster economic growth of the country.
Both Dr Nadeem-ul-Haque and Prof Dr Durre Nayab have addressed this challenge, highlighting that the decline in exports has been a major contributor to Pakistan’s persisting trade deficit. Over a span of two decades, the contribution of exports to GDP has dwindled from 16 percent to 10pc.
Dr Nayab pointed out that Pakistan’s global share in trade has dwindled from 0.15pc in 2005 to 0.12pc in 2021, placing the nation at a disadvantage when compared to countries like Bangladesh, India, and Vietnam.
A comprehensive report prepared by economists and researchers has pinpointed crucial factors behind Pakistan’s stagnant export growth. These include lackluster firm productivity, insufficient innovation, intricate incentive structures, limited export destinations, and inadequate investments in research and development.
Dr Haque underscored the necessity of strategically targeting potential markets that align with the products available for export, aiming to address the ongoing economic crisis.
A stark contrast has been drawn between Pakistan’s diminishing export competitiveness and the flourishing economies of nations like Bangladesh and India. Bangladesh’s export-focused economy has exhibited robust expansion, whereas Pakistan’s exports have remained stagnant at approximately $30 billion.
Dr Haque highlighted the disparity between Pakistan’s export challenges and Bangladesh’s triumphant transformation. By referencing historical instances such as South Korea’s technology-driven growth, Dr Nayab has stressed the paramount importance of bolstering export competitiveness, productivity, and innovation to overcome the stagnation.
Dr Haque concluded by underscoring the significance of collaboration among the government, exporters, and economists to identify potential markets that align with Pakistan’s export capabilities. This underscores the urgency of prompt actions to establish a thriving economic landscape.
These experts have accentuated the vital need for conducting a comprehensive survey at the firm level to identify impediments to productivity and export competitiveness. Addressing these challenges collectively holds the potential to pave the way for Pakistan’s economic resurgence.
