Ayesha Saba

Product diversity is of paramount importance in international trade and commerce, especially when it comes to Pakistani exports, reports WealthPK. Talal Saghir Ahmed, Deputy Director International Marketing Division at the Trade Development Authority of Pakistan (TDAP), said this while talking to WealthPK. “Pakistan is confronting significant economic challenges that demand innovative and strategic solutions. The country’s export market competitiveness is hampered by factors such as a lack of diversity, insufficient infrastructure, and low productivity. The exports are predominantly centred around a limited number of industries, with textiles, in particular, comprising a significant portion of the nation's export portfolio,” he said.

He highlighted that market diversification brought economic growth and formed a diversified production structure in any developing country. “By diversifying export offerings, Pakistan can tap into new markets and reduce dependence on a limited range of products, thereby mitigating the risks associated with fluctuations in demand for specific commodities. This diversification strategy contributes to the overall economic resilience of the country.” He noted that focusing on export-oriented industries encouraged businesses to explore and penetrate new markets. By doing so, Pakistan can reduce its economic vulnerability to fluctuations in a single export destination, thereby improving its resilience in times of global economic uncertainty.

Further sharing his concern, he said, “Pakistan’s industrial policy does not appear to align with its export policy. For instance, to produce sophisticated products, it would have to reduce the cost of intermediate inputs. In the case of imported intermediary goods, the import policy needs to be revisited.” Underlining the importance of diversifying export items, the TDAP official said, “While textiles are the backbone of Pakistan's exports, we have to open up new avenues for growth. We have untapped potential in sectors like agriculture, pharmaceuticals, and information technology. Exploring these areas can make our export sector more resilient.”

He said Pakistan had been working hard to improve exports and achieve sustained economic growth, both of which were essential for earning foreign currency and producing job opportunities. “It is crucial to increase export competitiveness through focused policy interventions to solve this issue. The country must undergo a structural transformation of its exports to upgrade to a more sophisticated export basket. This entails shifting its comparative advantage from primary to manufactured exports and, further, from a labour-intensive to a more capital-intensive productive structure,” he suggested.

He said that by strategically embracing a diverse range of products that are inclusive, culturally attuned, and innovative, Pakistan can not only enhance its competitiveness in international markets but also foster sustainable economic growth through resilient trade practices.

Credit: INP-WealthPk