ISLAMABAD: As Pakistan faces significant economic hurdles, including soaring inflation, low foreign exchange reserves, and high debt levels, the government is intensifying efforts to address these issues. A central component of its strategy is revitalizing external trade to achieve a trade surplus and stimulate sustainable economic growth.
To tackle these challenges, the government is pursuing a multi-faceted approach to diversify trade partners and explore non-traditional markets. Key initiatives include tariff rationalization, market diversification, and enhancing regional trade connectivity. The ‘Look Africa Policy’ and negotiations for Free Trade Agreements (FTAs) with various countries are pivotal to this strategy. Efforts are also underway to boost regional trade with Central Asian nations like Uzbekistan, Kazakhstan, Tajikistan, Turkmenistan, and Kyrgyzstan. This includes high-level meetings, such as Prime Minister Muhammad Shehbaz Sharif’s visit to Tajikistan, aimed at finalizing economic agreements.
Furthermore, discussions at the Shanghai Cooperation Organization (SCO) Summit have fostered regional economic integration with countries including Iran and Azerbaijan. Pakistani missions abroad have been instructed to focus on economic diplomacy to enhance exports and tap into new global markets.
Alamgir Chaudhry, CEO of the National Productivity Organization (NPO), emphasizes the need for industrial modernization and improved human capital to address the competitiveness of Pakistani exports. The NPO’s Productivity Drive aims to boost economic literacy and foster an export-oriented culture.
In addition to improving industrial competitiveness through the Strategic Trade Policy Framework (STPF), the government is working on easing business regulations, enhancing tax policies, and broadening the tax base to support the manufacturing sector. FPCCI President Atif Ikram Sheikh advocates for regional competitiveness in energy prices and a supportive tax environment to foster export growth.
The government is also focused on diversifying the export basket by supporting innovation-driven exports, brand development, and obtaining international certifications. Director General of Trade Policy Dr. Irfan Ali reports that the Ministry of Commerce is actively working on initiatives under the STPF to boost domestic exports and improve trade performance.
Pakistan’s economic potential lies in its talent, natural resources, and strategic location. By implementing the STPF and fostering a stable, business-friendly environment, the government aims to leverage these advantages for trade growth and economic stability. Continued political stability, consistent policy implementation, and cooperative efforts across political affiliations are crucial for navigating the current economic challenges and securing a prosperous future for Pakistan’s younger generation.
