The new FTA with China became effective on January 1 2020 under which several hundred items have been granted duty-free access to the Chinese market. Regrettably, the overall exports for the month of January have nose-dived instead of registering the anticipated increase. The government must investigate the reasons for the fall and remove the impediments that are hurting the export sector. Besides, it must set up an export finance bank to provide concessional loans to exporters. Furthermore, a special cell should be created in the ministry of commerce to focus on export led growth in order to revive the moribund economy.
The advisor to the PM on finance should be monitoring export earnings on a weekly basis. The prime minister must give undivided attention to the export sector which offers the most viable avenue to prop up the faltering economy, improve the current account and augment our foreign exchange reserves. The under-performance of the export sector calls for a serious appraisal of the role of the ministry of commerce, which has been disappointing. Heads must roll if exports are to be revived.
Arshad Majeed
Karachi