Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Economists suggest measures for diversification of exports
04-22-2010, 11:43 AM
Post: #1
Economists suggest measures for diversification of exports
* Say cost of doing business should be made favourable

ISLAMABAD: The prominent economic think tank suggested the government for diversification of country’s export through a number of measures including, targeted development, rebates, marketing support framework, import of raw materials from India and capturing China’s export markets.

The Panel of Economists in its report submitted to the government revealed that the failure to achieve export diversification was rooted in the current institutional structure relating to exports and trade balance. This institutional structure, which was manifested in formal laws and their enforcement characteristics; tacit rules of business and procedural mechanisms provides strong disincentives for export growth and export diversification on one hand, while encouraging imports and restricting foreign exchange inflows through outsourced international trading on the other.

The current corpus of rules, regulations and their enforcement mechanisms were associated with high direct costs of doing business and substantial transaction costs stemming from uncertainties flowing from poor information flows on one hand and graft in governmental departments on the other.

According to the report, specifically the current structure of rules was designed for traditional sectors such as textiles and agricultural products and discriminates towards non-traditional sectors such as high value-added manufacturing, agricultural product processing, light engineering and small scale enterprises including both manufactured and cottage industry items. The discrimination occurs in a number of ways including absence of standard concessions such as duty draw backs and meaningful rebates, lengthy and complicated procedures for exports, inadequate working capital support and export documentation regulations which limit the scope of international, outsourced trading, bureaucratic red tape, graft in governmental departments, weak contract enforcement and lack of protection of private property rights (such as protection of export consignments from bandits during road transportation to the port) raises the costs of business across sectors and limits the development of new markets overseas.

The government made inadequate investment in power generation and its distribution facilities. The consequent high electricity tariffs were an important factor in making manufactured exports internationally uncompetitive.

Inadequate investment in port and transportation facilities resulting in a long time lag (typically three weeks) between arrivals of a shipment of imported raw materials at the port and its arrival at the factory. There was a similar long time lag between dispatch of export consignments from the factory gate to dispatch of cargo from the port. These time lags oblige manufacturers in Pakistan to maintain much larger inventories than their competitors, which placed relatively high financial costs and a significant factor in lack of price competitiveness.

Lack of investment in the quality of professional university education, technical and vocational training and institutions for upgrading skills of in-service personnel have adversely affected every aspect of production and sale; from the productivity of machine operators, the ability to conform to statistical quality control procedures, product design, production management, inventory control and marketing. ijaz kakakhel
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  FBR Takes Strict Measures Against Non-Filers, Issues Warning of Utility Services Disc LRE-Azan 0 197 12-05-2023 07:05 PM
Last Post: LRE-Azan
  RUDA’s industrial zone emulates measures to fight pollution LRE-Azan 0 647 01-18-2023 02:57 PM
Last Post: LRE-Azan
  Linkage of Gwadar Port with Karakorum Highway will multiply Pakistan exports to China Salman 0 8,211 09-24-2013 11:42 AM
Last Post: Salman
  Owners To Ensure Fire Safety Measures In High-Rise Buildings In Lahore Salman 0 5,225 06-08-2013 06:18 PM
Last Post: Salman
  DHA takes measures to improve living environment in area Salman 0 5,164 08-24-2012 11:27 AM
Last Post: Salman
  Rising trade figures: Pakistan exports up by 3.9 percent in 1H 2011-12 Salman 0 4,362 01-11-2012 12:13 PM
Last Post: Salman
  CDA to ensure fire safety measures Salman 0 3,300 01-02-2012 12:51 PM
Last Post: Salman
  Pakistan exports increase by 7.6% during Jul-Nov 2011 Salman 0 4,048 12-21-2011 01:21 PM
Last Post: Salman
  Expo Pakistan to enhance exports Lahore_Real_Estate 0 3,480 10-24-2011 01:31 PM
Last Post: Lahore_Real_Estate
  Exports of Rs1,722,691 million recorded in 10 months Lahore_Real_Estate 0 3,305 05-21-2011 11:47 AM
Last Post: Lahore_Real_Estate
  Pakistan can earn additional $6.5m in cement exports to Afghanistan Lahore_Real_Estate 0 4,556 03-04-2011 05:11 PM
Last Post: Lahore_Real_Estate
  Fish exports boost by 54.90 percent Lahore_Real_Estate 0 3,063 11-06-2010 12:21 PM
Last Post: Lahore_Real_Estate
  UK announces more air cargo security measures Lahore_Real_Estate 0 3,022 11-05-2010 01:25 PM
Last Post: Lahore_Real_Estate
  Rice exports up by 43pc in July, August Lahore_Real_Estate 0 3,520 09-22-2010 12:42 PM
Last Post: Lahore_Real_Estate
  Economists flay Zardari’s proposal of flood tax on property Lahore_Real_Estate 0 3,363 09-08-2010 02:01 PM
Last Post: Lahore_Real_Estate
  60 percent mango exports affected Lahore_Real_Estate 0 3,427 08-26-2010 11:51 AM
Last Post: Lahore_Real_Estate
  PIA pilots suggest special flights for relief work Lahore_Real_Estate 0 3,761 08-19-2010 01:32 PM
Last Post: Lahore_Real_Estate
  Economists criticise lack of policymaking in Pakistan Lahore_Real_Estate 0 3,264 08-10-2010 12:19 PM
Last Post: Lahore_Real_Estate
  Pakistan faces food shortage owing to floods: economists Lahore_Real_Estate 0 3,666 08-07-2010 12:38 PM
Last Post: Lahore_Real_Estate
  Flourmills end protest as govt promises to remove hurdles in exports Lahore_Real_Estate 0 3,625 07-13-2010 02:35 PM
Last Post: Lahore_Real_Estate

Forum Jump:


User(s) browsing this thread: 1 Guest(s)