Beyond textiles: Rethinking Pakistan’s place in global trade

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LAHORE: Although the world had expected some of Trump’s tariff measures, it was mostly assumed that he would target US major trade partners. The involvement of small economies like Pakistan and Sri Lanka was a surprise.

Although major trade partners are developing retaliation in the form of mutual rates, small countries like Pakistan lack such advantage. Some experts suggest that Pakistan may consider reducing duties on US imports in exchange for tariff privileges from Washington. However, it’s much easier than working. Under the rules of the World Trade Organization (WTO), Pakistan cannot unilaterally offer low taxes to the United States without any formal bilateral agreement – in which the United States is not in a hurry to negotiate. The reduction in any unilateral tariff will automatically spread to all WTO members.

Pakistan will have to develop a strategic roadmap with practical and realistic measures to renew its export strategy and strengthen its position in the upcoming trade talks. It is a major weakness in its high dependence on textile exports, low -tech products and raw agricultural items. There is a dire need to diversify the export offerings.

In this regard, strategic measures should include transfer from cotton yarn to value added products such as ready -made garments, denim brands and technical textiles. Similarly, instead of exporting raw agricultural goods, Pakistan should focus on taking action before exporting them. Package offers important export capacity of halal foods, frozen food, juice and spices (value -added agricultural exhibitions).

There is also a growing IT sector in Pakistan which is less use. The government must support software exports and call center development, in which countries such as India and the Philippines will be learned. The country has developed light engineering capabilities, and maximum efforts should be made to increase the export of auto parts, power fans, medical appliances and power fittings.

Currently, Pakistan’s exports are more focused in some markets – namely, the United States, the United Kingdom and the United Arab Emirates, which makes them at risk of changing political dynamics and tariff governments. Demand and less competition is increasing in African markets, where the state can promote trade through barter arrangements or trade finance methods. For Central Asia, Pakistan should take advantage of the Belt and Road Initiative (BRI) and its strategic location. In ASEAN countries, it will have to find opportunities for rice, processed foods and cotton equipment. With China, Pakistan should take advantage of its independent trade agreement (FTA) and China Pakistan Economic Corridor (CPEC) to increase exports of rice, seafood, halal meat and bulk content.

FAK, to understand these goals, Pakistan will have to improve its export competition. High logistics costs, incredible power supply and bureaucratic red tape are damaging export prices. Energy sector reforms are needed, as well as investment in dry ports, warehouses, trucks and customs processes. Documents must be delayed in barriers and customs.

The government should provide matching grants for export marketing, upgrade packaging and design innovation. It should also set up product development centers (PDCs) for key sectors such as textile, leather equipment and surgical equipment. With the identity of the minimum brand, Pakistan is often considered a low -end supplier. Investing in the ‘Med in Pakistan’ brand can newcomer this image can renew this image.

Poor economic diplomacy, approach to reaction policy and poor harmony between the Ministry of Commerce, embassies and business organizations is also a hindrance to export growth. Export intelligence and business match -making requires a pressure to train commercial attachments. Business chambers should be involved in trade talks to ensure that ground realities are considered. Construction of regional alliance with countries like Bangladesh, Sri Lanka and Kenya can also strengthen lobbying efforts against discrimination prices.

It is time to empower freelancers and empower IT startup by facilitating the international payment system and explaining the taxation. Education exports should be promoted by attracting students from Africa and Central Asia. Meanwhile, Pakistan can produce the most essential foreign exchange by promoting medical tourism through hospitals in Lahore and Karachi, especially for special surgeries offered at competitive prices. Exim Bank’s capacity to provide competitive export credit will also support the increase in export rate subsidy on working capital for high -capable exporters.

In the long run, the purpose of Pakistan should be increased from 10 % to 20 % from its exports within a decade. Its purpose should be to bring one million SMEs into a formal export economy and get 50 billion in non-textile exports by 2035-less than $ 10 billion from the current level. Pakistan should fully use its geo -strategic location to become a regional manufacturing and commercial center.