KARACHI: Islamabad Chamber of Small Traders (ICST) has asked the government to restructure the ailing export sector to reduce dependence on loans and generate employment opportunities.
The heavy concentration of exports in few commodities and few markets has led to export instability, said Patron CST Shahid Rasheed Butt.
He noted that incentives are frequently announced for the export sector, especially to the textile sector, which has not increased exports but enriched a few exporters.
Shahid Rasheed Butt said that fundamental changes are required for the restructuring of the export sector so that it can have a positive impact on the overall situation, which is very discouraging.
Pakistan has already lost a significant part of the international textile clothing market to regional rivals and now exporters are fast losing yarn markets to the much cheaper products from competitors, he added.
Yarn exports from Vietnam have become a threat due to increased Chinese investment and relocation of textile units, he said, adding that domestic cotton consumption is increasing in Vietnam and Bangladesh while it is declining in Pakistan.
Pakistan can only overcome challenges in the export sector if it diversifies its exports in commodities and also in terms of markets.
Other issues include low value-added and poor quality of exportable items, obsolete use of machinery, using outdated technology, higher wastage of inputs, low labour productivity, little spending on research and development, inability to meet requirements of consumers in terms of fashion and design, failed delivery schedule and the dearth of marketing techniques.