Ayesha Saba

Pakistan risks falling behind in the global trade race unless it makes concerted efforts to address export constraints and visa challenges.

By implementing reforms that prioritise export diversification and global connectivity, Pakistan can achieve long-term economic resilience and prosperity. Talking to WealthPK, Dr Muhammad Haroon, a former economic adviser with the Ministry of Planning, Development and Special Initiatives (MOP&DSI), asserted that the sustainability of economic growth hinges on robust exports.

“Countries that have successfully transitioned to higher economic tiers have done so by focusing on exports,” he pointed out. He stressed that Pakistan needs to diversify its export base beyond textiles and agriculture, investing in high-value industries such as information technology, pharmaceuticals, and engineering goods.

“A primary concern among economists is Pakistan’s stagnant export-to-GDP ratio, which remains below regional competitors like Bangladesh and Vietnam,” he stated. Haroon highlighted that for exports to flourish, Pakistan must address inefficiencies in logistics, high energy costs, and a complex taxation regime that discourages new investments.

“Moreover, limited access to global markets due to stringent visa policies prevents Pakistani entrepreneurs from expanding their businesses abroad.” He emphasised that global trade is built on networks, relationships, and face-to-face interactions. “If Pakistani businesspersons and exporters struggle to secure visas to key markets, their ability to negotiate contracts, attend trade fairs, and establish supply chains is severely compromised.”

The economic expert suggested that easing visa restrictions, particularly for exporters, could yield significant economic benefits by opening doors to new partnerships and foreign direct investment. “Pakistani business leaders are frustrated by the visa hurdles they face when seeking to enter key markets such as the European Union, North America, and even regional trading partners. Despite having longstanding trade relationships, the process of obtaining business visas to these nations remains cumbersome,” he noted.

Haroon said that the United Arab Emirates, for instance, has streamlined visa procedures for business visitors, resulting in a surge in trade and investment. “Similarly, China has implemented flexible visa regimes for entrepreneurs from strategic trade partners, which has contributed to its rapid export-driven economic expansion.” He recommended that the government collaborate with foreign embassies to introduce fast-track business visa programmes for exporters and investors.

“Additionally, trade delegations should be actively facilitated to explore new markets and attract investment opportunities,” he suggested. Meanwhile, an official from the Trade Development Authority of Pakistan (TDAP) told WealthPK on condition of anonymity that the government should implement policies that have broad political support and are designed to remain consistent over time, regardless of change in political leadership. “This can be achieved through bipartisan agreements and long-term strategic planning.”

“Efforts to improve the ease of doing business have yielded some positive results, but more needs to be done. Streamlining regulatory processes, reducing bureaucratic inefficiencies, and enhancing transparency are critical steps toward creating a more business-friendly environment. Addressing these issues will help reduce operational costs, foster innovation, and attract both domestic and foreign investment,” he stressed.

Credit: INP-WealthPk