NA panel sceptical about $60b exports

ISLAMABAD:

The National Assembly Standing Committee on Commerce on Wednesday raised the question whether the government’s plan to increase exports to $60 billion by 2029 in current economic and industrial landscape was feasible.

“We believe your targets are not realistic,” the committee chairman remarked as officials briefed the panel on the country’s export strategy.

Speaking on the occasion, committee member Shaista Pervaiz pointed out the stark decline in cotton production, which once stood at 14 million bales but has now dropped to 5.5 million bales. “Look at the current state of cotton production,” she lamented.

The officials defended their projections, citing factors like Reko Diq’s potential, Chinese investments, and global trade trends. They noted that several countries with zero cotton production still managed to export €40 billion worth of textiles annually.

“That’s exactly what we’re saying. Show us some exceptional performance,” the committee chairman said.

Expressing concerns over the internet issues, the committee chairman asked how the exports could grow when digital connectivity remained unstable in the services sector.

The officials from the Trade Development Authority of Pakistan (TDAP) assured the committee that tax and power tariff issues for the textile sector would be addressed. However, they admitted that Pakistan never witnessed a 60% increase in agro-based exports in any given year.

The TDAP officials reported that last year agricultural exports reached $1 billion and that flagship trade events contributed to export growth in multiple sectors.

They highlighted that in the current fiscal year 124 international exhibitions showcased Pakistani products, 11 trade delegations visited Pakistan and 10 Pakistani trade delegations participated in international trade events.

Dismissing the significance of trade fairs, committee member Gul Asghar Khan argued that “no matter how many exhibitions we hold, unless we resolve traders’ issues, nothing will change”.

Khan expressed frustration over the disconnect between official briefings and ground realities, saying “in meetings it felt as if there were no country like Pakistan” but regretted that no tangible results were being achieved to increase exports.

Committee member Rana Atif pointed out that in 2022 total exports were $32 billion but instead of increasing they dropped to $28 billion in 2023.

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