ISLAMABAD: The PML-N is known for its pro-industry policies, but exports data reveals otherwise: Pakistan is lagging behind countries like Bangladesh and Vietnam, with exports dropping by almost $4 billion since the party came to power in 2013.

Pakistan’s exports decreased more than 15.4 per cent from $24.58bn in 2012-13 to $20.8bn in 2015-16.

Although Minister of Commerce Khurram Dastgir Khan claimed that a number of “exogenous and endogenous factors” were responsible for the downturn in exports, he zeroed in on the disturbingly low investment as the main reason for this drop.

In his written response submitted to parliament shortly before Eid, the minister explained that the country had a negative trade balance with 84 countries, including major trade partners like China, United Arab Emirates (UAE), Saudi Arabia and Indonesia besides smaller countries like Mali, Bahamas and Bhutan.

According to the minister, one reason for the increased pressure on imports was that the domestic cotton crop shrank, thus necessitating higher imports from India. However, the most critical factor was “the low investment in the export sector,” Mr Khan said. He explained that the investment in export-oriented sectors has remained disturbingly low, as the cutthroat competition with emerging players, such as Bangladesh and Vietnam, has made margins in the exporting business fairly unattractive.

His reply also identified the structural problems in Pakistan’s trade: Pakistan’s export market lacks diversification, as more than 50pc of exports rely on only six markets, namely the United States, China, Afghanistan, UAE, United Kingdom and Germany.

He said the narrow export basket has also contributed towards this negative trend. Pakistan’s exports are limited to a few items, such as cotton, leather, rice and a few others. Since November 2013, many important currencies have significantly depreciated while the Pakistani rupee has appreciated by 3pc, which has made exports less competitive.

Commenting on the written reply by Mr Khan, Pakistan Tehreek-i-Insaf (PTI) MNA Asad Umar said it is ultimately the government’s responsibility to respond to international changes and ensure that the country’s exports are marketable.

Published in Dawn, September 16th, 2016