Exports are the Achilles heel of Pakistan’s economy. Our exports have been stagnant for the last two decades, hovering around 25 billions dollars annually. This amount is extremely low as compared to other countries in South Asia. This is so because our economic planners have badly neglected this vital sector.

According to the latest State Bank figures, during the last fiscal year that ended on June 30, Pakistan’s exports (fob value) increased to $31.1 billion whereas imports totalled $53.2bn, leaving a trade gap of $22.1bn. As Pakistan is faced with a precarious external finance situation, we need to close this gap as early as possible.

A new export drive is the order of the day comprising a range of initiatives such as quality improvement, product diversification, more value-addition, further penetration into existing export markets and active exploration of new markets. But this is easier said than done. As a consequence of wrong decisions, the economy is in bad shape due to an unprecedented energy crisis. In the first eleven months of the last fiscal year, large-scale manufacturing output grew by just one per cent, primarily due to tremendous hikes in energy prices, political uncertainty and high interest rates. High prices of fuel oil, gas and electricity have doubled the cost of production and made our goods uncompetitive in the international market.

Increasing Pakistan’s exports involves a multifaceted strategy that addresses various economic, structural, and policy-related aspects. Here are some key strategies that could help increase exports from Pakistan. According to international market experts, the following policy measures need to be urgently implemented to achieve the desired goal.

First and foremost, we need to diversify the export base. We must move beyond traditional exports like textiles and agricultural products and invest in technology, pharmaceuticals, engineering goods, and services. At the same time, steps should be taken to explore new markets in Africa, South America, and Southeast Asia in addition to traditional markets like the US, EU, and Middle East.

Improving Quality and Standards is another vital need. Strict quality control measures are a must to meet international competition. Exporters should be trained to obtain necessary certifications like ISO, HACCP, and others relevant to specific industries to gain access to global markets.

In order to enhance value addition, there should be more emphasis on exporting finished goods rather than raw materials to capture higher value. Attention should be given to develop and promote Pakistani brands internationally to increase product recognition and demand. Over the years, Pakistani exports have suffered badly from lack of investment in technology and innovation. It needs to increase investment in research and development to improve product offerings. Simultaneously, exporters should adopt modern technology in manufacturing and supply chain management to increase efficiency and reduce costs.

Infrastructure development is another crying need in order to improve transportation and logistics infrastructure to reduce export costs and improve delivery schedules. To this end, it is important to simplify procedures and streamline customs and regulatory procedures to make it easier for businesses to export.

In many countries, exporters are offered special incentives such as financial concessions like tax breaks, subsidies, and low-interest loans to motivate them to work harder. At the same time there is a need to negotiate favorable trade agreements with other countries to reduce tariffs and other barriers to trade.

For capacity building, the government should arrange for training and support to exporters on international market trends, export procedures, and compliance. Market research provides the basis for any organized export promotion effort. Detailed market research should be conducted to identify emerging trends and opportunities in global markets. Another recommendation is to regularly participate in international trade fairs and exhibitions to showcase Pakistani products and build business connections.

No plan to boost exports can succeed without ensuring a reliable and affordable supply of energy to industries to keep production costs competitive. At present energy costs have become prohibitive due to which industries are finding it difficult to survive. To this end, measures are needed to reduce the cost of doing business, including reducing bureaucratic red tape and improving ease of doing business. Needless to say, it is only by adopting a comprehensive approach that Pakistan can enhance its export potential and achieve sustainable growth in international trade.