FPCCI advocates prioritising export-oriented industry in coming budgetBreaking

March 20, 2024

Ayesha Saba

The upcoming budget 2024-25 should allocate substantial resources towards initiatives aimed at augmenting the export capacity of key industries. The budget represents a crucial turning point in Pakistan's economic development as the fiscal agenda needs to prioritise export-oriented development projects as the nation navigates through opportunities and difficulties. Speaking to WealthPK, Malik Sohail Hussain, Chairman of the Coordination Federation of Pakistan Chambers of Commerce and Industry (FPCCI), asserted that prioritising export-oriented industries was imperative for sustainable economic growth. "By focusing on projects geared towards expanding export capabilities, Pakistan can tap into new markets and diversify its revenue streams," he highlighted. He pointed out that at the forefront of Pakistan's economic hurdles was the high cost of doing business. "High electricity tariffs stand out as a significant barrier, dampening industrial expansion and competitiveness.

Addressing these exorbitant energy costs is paramount to revitalising the manufacturing and production sectors. Urgent reforms are also necessary for tariff rationalisation and enhanced efficiency." Sohail opined that the upcoming budget 2024-25 should allocate substantial resources towards initiatives aimed at augmenting the export capacity of key industries. "From textile manufacturing to information technology services, targeted investments should seek to enhance product competitiveness and access to global markets." Amid these challenges, Sohail identifies the burgeoning information technology sector as a beacon of opportunity. "There exists immense potential for Pakistan to harness the IT boom in China through collaborative initiatives. By tapping into China's expertise and resources, Pakistan can bolster its technological infrastructure, foster innovation and capitalise on emerging digital economies."

Talking to WealthPK, an official of the Ministry of Planning, Development and Special Initiatives said that Pakistan had been working hard to improve exports and achieve sustained economic growth, both of which were essential for earning foreign currency and creating job opportunities. He said the proposed Public Sector Development Programme (PSDP) worth Rs1,150 billion in the upcoming budget contained critical infrastructure development and social sector projects. "The PSDP has mostly been following the development framework of five Es: exports, equity, empowerment, environment and energy to ensure robust economic growth," he highlighted. The official said PSDP 2024-25 prioritised allocating funds to the ongoing strategic and core projects, with a specific focus on the energy sector, transport and communications, and water resources.In PSDP 2024-25, the government has proposed Rs3 billion for the Industries and Production Division, Rs2.9 billion for 14 ongoing schemes and Rs100 million for a new scheme, according to WealthPK Research.

INPCredit: INP-WealthPk