‘High cost of doing business main cause of dwindling exports’

KARACHI: Dr Ishrat Husain, former governor of the State Bank of Pakistan, termed lack of energy supply, high cost of doing business and shortage of skilled labour, main causes of dwindling exports.

Speaking at a seminar regarding export competitiveness at the FPCCI, he said exports play a very important role in keeping the economy stable; therefore, this sector should be facilitated, said on Tuesday.

Energy prices and some other reasons result in high cost of doing business, which causes loss of competitiveness and retreat in the international market, he said. Other speakers said law and order situation also contributed to the increase in the cost of doing business, while some conflicting policies should be rectified.

“Our exports are falling since 2013, while some other regional countries have doubled their exports during the same period,” they added. FPCCI president Zubair Tufail said that regional countries are providing incentives to their export sector.

The price of gas and electricity is 50 percent less than Pakistan, while their labour is also cheap. Energy is cheap as compared to Pakistan in the competing countries such as Sri Lanka and Indonesia and that Indian textile exports have surged by over 31 percent in one year, Tufail added.