Poor export management
It is bad enough that low value-add textile products make for the best of our export produce, but it is criminal that whatever little market edge we carved out in the sector is also being lost because of official neglect. APTMA took its time coming out with its concerns, but its long list ought to shock the government. It turns out that a good 30 percent of production capability is currently compromised due to ‘supply mismanagement, high cost of energy, lack of market access, no investment, country perception, policy and implementation’, among other things.
It might also have come as a surprise to the government that while Pakistan’s share in the global textile market has decreased over the last half decade, India, Bangladesh and China have all registered healthy increases, even though not all enjoy the high natural endowment that Pakistan does. Yet there is little in the pipeline to suggest remedial measures anytime soon. Our neighbours have also made considerable progress in reducing bureaucratic hurdles and red tape in setting up fresh investment. Needless to say, of course, that such concerns have not bothered our leadership too much.
The problem, eventually, is one of revenue. And that is what ought to embarrass the N-league more than most things. Its promises of expanding the tax net amounted to naught. It could also not honour campaign boasts about the power crisis. And it is clearly in no position to do anything about exports. Adding value to the export basket is a far off thing when even the current, unimpressive mix cannot be maintained. With the IMF program running out next year, the Nawaz government has its work cut out. It will no longer be able to hoodwink voters. Unless revenue is taken seriously – and exports placed right at the top of the priority list – the government will lose serious credibility as elections draw near.
