Our low levels of exports have always been an obstacle to the stabilization of our economy. The underperforming export sector is one of the major issues that compels us to seek International Monetary Fund (IMF) bailouts and other external financial support time and again.
The causes behind our low exports are known: weak export infrastructure, political instability, the energy crisis, a high cost of doing business, lack of efficient long-term policies and investment, among others. These causes are interconnected. The dearth of investment in the other areas like industrial plants leads to a limited export base, and political instability contributes to the lack of long-term policies.
Our exports sector mostly relies on agriculture and textiles. This limited base makes Pakistan's exports sector vulnerable to any external shocks. Therefore, our exports sector needs to be broadened for a sustainable economy. In order to improve the performance of exports, the government needs to reduce cost of doing business, increase productivity, investment and exports base, promote political stability, and implement long-term policies. The policymakers should widen the export base by investing in areas beyond agriculture and textiles.
Aftab Ahmed Bhatti
Jacobabad