The fifth most populous country in the world, Pakistan. A country full of potential. Pakistan is highly dependent on its exports in order to enhance economic growth. The foreign income will allow us to finance imports, service debt, stabilise the Pakistani rupees and to overcome the never-ending problem, balance of payment deficit. Exporting from Pakistan should be in line with market trends and the quality. It is therefore very important to be certified on internationally acceptable standards. In order to strengthen the export business from Pakistan it is essential to have adequate levels of investment ready to back it up. However, Pakistan falls short in supply. Pakistan’s non-conductive investment environment stems from uncertainty. There are various indicators which show why Pakistan has not been able to have a positive impact on its growth in recent years. Massive lack of investment is one of the primary reasons why Pakistan’s growth in exports has never reached half of its potential. There are also other reasons as to why growth is not being achieved, such as; higher tariff structure, low penetration in global markets, poor infrastructure, erratic growth trends and low technological advancement. Various governments coming into power have been meddling with irrational policies and giving very complex incentives which handicapped the export of Pakistan. Other nations in Asia did manage to achieve exceptional growth in export and that is mainly because they implemented export led growth strategies with high savings and investment rates. Other nations in Asia emphasised on areas of competitive advantage, and rapid industrialization. Now, the question is: HOW CAN PAKISTAN EFFECTIVELY INCREASE EXPORT IN ORDER TO DRIVE SUSTAINABLE GROWTH?

Adopt innovative thinking & out-of-the box solutions in difficult times

Essentially, Pakistan needs to start capitalising on exportable services & products which require the basic infrastructure and minimal investment. E.g. globally demand for software and IT solutions is increasing and it is easier to establish a software house instead of a manufacturing unit. The IT export from Pakistan increased by 44% accounting to $379 million during the first quarter of the fiscal year 2020-21, growth in this area 'sky's the limit’ by looking at various avenues which can help attain growth. Pakistan’s neighbour India their IT sector has increased in the fiscal year 2020 with 7.7% accounting to $191 billion, with exports reaching to approximately $147 billion. There is no shortage in Pakistan, there is lack of exposure and the need for setting up the infrastructure which will allow the country to export easily. 

Empower SMEs

The SMEs in Pakistan are the backbone of the economy. There are approximately 3.8 million small and medium enterprises. They may comprise (amongst many other variants) service providers, manufacturing units and start-ups. Today, 30% of Pakistan’s GDP is made up from the SMEs and approximately 25% is from generating exports. Essentially, in order to thrive the export industry in Pakistan, it is important to have policies in place that empower SMEs to reach their true potential. In a world like today it is inevitable to have a digital presence. Furthermore, offering various financial options to SMEs and a better infrastructure for the paperwork will give ease in their work and can be carried quicker and more effectively. When the SMEs sector gets backing from the government which they need it will automatically lead to creation of skilled jobs, increased domestic tax revenue, to more robust domestic economic growth.