AVN Report
ISLAMABAD: The Pakistan Business Forum (PBF) has reported a notable 13.5 percent increase in the country’s exports in October 2023, totaling $2.7 billion, along with 4.5 percent reduction in the trade deficit during the same period.
PBF President Chaudhry Ahmad Jawad says that the agriculture sector witnessed an impressive 73pc growth in October, attributing the surge to significant increases in rice and sesame seed exports. This expansion, he noted, signifies a diversification of the country’s exports and underscores the strength of the agricultural industry.
Stressing the need for boosting services exports, particularly in information and communication technology (ICT), to alleviate the balance of payment deficit, Jawad pointed out that India’s ICT exports surpassed $140 billion in fiscal year 2022-23, doubling in the past five years. In contrast, Pakistan’s ICT exports, which peaked at $2.6 billion in fiscal year 2021-22, have stagnated.
Citing the main reason for the disparity between Pakistan and India as the availability of skilled labour, Jawad underscored India’s focus on technology and engineering, yielding positive outcomes. He acknowledged that rectifying this situation may take time but expressed optimism about Pakistan’s potential for ICT sector growth.
Jawad conveyed concerns raised by IT companies in Pakistan, asserting that many IT graduates lack the necessary skills for driving exports. He proposed addressing this issue through crash courses to equip graduates with essential skills. He further contended that while Pakistan possesses ample talent, the technology sector faces challenges in creating sufficient demand, making it difficult to attract businesses to the country.
Regarding the challenge of remitting money outside Pakistan, Jawad highlighted the State Bank of Pakistan’s (SBP’s) efforts in 2020, which led to increased growth in subsequent years. However, he noted that last year’s balance of payment crisis eroded confidence, prompting companies to retain their dollars abroad. He called for government intervention to address this issue.
A PBF official expressed optimism about the caretaker IT minister’s ambition to boost ICT exports to $10 billion and introduce PayPal and Stripe payment gateways in Pakistan. However, he raised concerns about the SBP’s restrictions on exporters’ remittances due to chronic dollar shortages, urging the finance division to address this critical issue.
