Ayesha Saba

Amid persistent shortages of commodities domestically, experts have called for prioritizing a surplus of Pakistan’s exportable commodities to ensure sustained economic growth. Speaking to WealthPK, Azeem Khan, a senior scientific officer at National Agriculture Research Center (NARC), said agriculture stands out as a primary sector ripe for such prioritization. “Pakistan boasts a diverse range of agricultural products, including rice, cotton, fruits, and vegetables, many of which are in high demand in global markets.” He emphasized the need for a strategic shift in policy focus to identify and promote exportable commodities surplus. “By directing resources and attention towards industries where Pakistan holds a competitive advantage and has excess production capacity, the country can not only address domestic shortages but also bolster its international trade position and generate much-needed revenue.”

However, he said inefficiencies in farming practices, insufficient infrastructure and logistical bottlenecks have hampered the sector's potential. He advocated for targeted investments in agricultural research, technology adoption, and value chain development to unlock the full export potential of these commodities. Azeem expressed concerns that Pakistan's export sector remains vulnerable to various external factors, including fluctuations in global demand, changes in commodity prices, and shifts in international trade policies. “Enhancing the quality of exported goods is crucial for maintaining competitiveness in global markets. This includes ensuring that Pakistani products meet international standards and are perceived as reliable and of high quality by global consumers.” Abdul Samad, Trade Adviser at the Ministry of Commerce, said Pakistan’s export strategy has faltered because it has overly depended on conventional incentives and policies focused on import substitution.

“This approach has failed to achieve the needed export diversification and boost in competitiveness.” Samad advocated for a comprehensive export policy that balances the need for stable domestic supply and price levels to increase export revenue. He said that recently the Pakistan Sugar Mills Association has reported an excess of approximately 1.6 million tons of sugar. “The association has urged the government to permit the phased export of at least one million tons. “This strategy can generate significant foreign exchange revenue, estimated between $650 and $700 million. Such measures are critical to maintaining economic stability and leveraging surplus production for financial gains.” He recommended that the government should formulate a policy framework that not only targets increased exports but also ensures that domestic market stability is maintained. “This involves strategic planning to avoid shortages and price hikes in the local market while exploiting export opportunities to their full potential.”

Credit: INP-WealthPk