Muhammad Saleem

Pakistan’s export sector alone has the potential to fetch the much-needed foreign investment, bolstering its economy and cutting its reliance on international financial institutions (IFIs) for bailouts, said Vice Chairman of Pakistan Hosiery Manufacturers & Exporters Association (PHMA) Hazar Khan while talking to WealthPK.

He said Bangladesh had made great strides in exports, earning billions of dollars in foreign exchange, and providing jobs to millions. Recognizing its importance, the country has set up an office of the apparel industry in the Prime Minister’s Secretariat, he added. “The Bangladeshi government is ensuring that the industry leaders must have a seat at the table. However, in Pakistan, the situation is altogether different, as the real stakeholders are not consulted by the policymakers.

The business fraternity is forced to toe the line of those having no hands-on experience in running industries,” Hazar Khan said. “We need to give our exporters and trade bodies the confidence that no policy will be made behind doors. This approach will help bring the policymakers and entrepreneurs on the same page, which is crucial to getting the economy back on track,” he asserted.

The PHMA vice chairman pointed out that the exporters were walking a tightrope due to the high cost of energy and fluctuating prices of raw material. From electricity to gas, everything is causing disruptions, while those at the helm seem dragging their feet on resolving these pressing issues. Hazar Khan lamented that the rulers had promised a cut in the electricity rates but months had passed without any concrete action in this regard.

“Despite all these hurdles, the export sector is striving a lot to strengthen the economy so that we can get rid of the foreign lenders. However, without government’s assistance, the business fraternity alone cannot help the country get out of insolvency and move towards financial stability,” he said. Ameer Ahmed, a textile exporter, told WealthPK that it's ironic that Pakistan was caught in a vicious cycle of consumption-driven growth. This approach is not serving the country rather it’s leading to deficits.

On the contrary, exports are lifeline for sustainable development of Pakistan. According to him, the exporters are far more productive than non-exporters. The export sector can create jobs, stabilize currency, strengthen the national economy, and improve the balance of payments. “For years, we have been trying to convince the rulers that only an export-driven economy can bring prosperity and eliminate the menace of unemployment.

Instead of strengthening exports, the government throws its weight behind the real estate sector, claiming that it can solve all economy-related pressing issues. However, reality tells a different story — only textile exports are earning for the country. The real estate sector’s so-called boom has wreaked havoc on other sectors, particularly agriculture,” he said.

Ahmed further said unchecked expansion of private housing colonies had swallowed up fertile agricultural lands, leading to a decline in cotton production. Concluding, he said, “We must bolster the export sector, which provides jobs to millions, and establish Pakistan’s credibility in the international markets. A steady inflow of foreign exchange can help Pakistan reduce its reliance on the IMF bailouts.”

Credit: INP-WealthPk