How can Pakistan improve its economy?
The nation should increase its exports to $90b
Syed Ali Hassan
Iran Daily’s correspondent
in Pakistan
All the groups related to the economy, including exporters, are suffering due to the declining economy of Pakistan; the people suffering from inflation are demanding immediate relief, while the current government of Pakistan has lost the right to give any kind of relief to its people after signing an agreement with the IMF.
110 million people living below the poverty line have been affected by the increase in electricity prices in Pakistan after the IMF agreement, while people who are fed up with the economic conditions are looking to end their lives. However, Pakistan’s private sector is still not disappointed and is advising the government to come out of the current crisis.
Former president of Sialkot Chamber of Commerce and current exporters Mian Naeem Javed said that a few years ago, Pakistan was far ahead of India in the export of textiles, leather and surgical instruments, but today we cannot even think of competing with India. To compete with India, Pakistan’s annual exports should be around $90 billion.
He further said that if we want to do something, make it possible to trade in local currencies with the Central Asian countries, Iran and China, for India has the market of America and Europe, it has become almost impossible to compete there. Zafar Paracha, General Secretary of Currency Exchange Association of Pakistan, said that to compete with India, Pakistan will have to increase its foreign exchange reserves from $8 billion to about $95 billion, which is currently a dream.
Pakistan Software Warehouse Association Chairman Zohaib Khan says that Pakistan can grow faster than India in the IT sector. From 2019 to 2022, Pakistan has grown 177% in the IT sector. Despite the economic crisis of the past year, IT exports are more than $2.5 billion. If Pakistan’s policymakers determine the right direction, Pakistan’s IT exports can be around $33 billion.
According to Zohaib Khan, Pakistan has a population of around 120 million youths, if they are given quality and world class training in the IT sector, Pakistan has the potential to overtake India in the IT sector, allowing freelancers and software exporters to easily bring and take their earned dollars to Pakistan.
He further said that according to the State Bank, about $2.6 billion is earned from IT exports; according to me, the actual IT exports are $5 billion, more than half of which is kept by software houses and freelancers abroad because they have to make international payments. If those dollars are brought to Pakistan, sending foreign remittances out becomes very difficult.