Page 49 - CMA Journal (Sep-Oct 2025)

Focus Section

b) Poor Market Access- Despite performing efficiently economies, such as China, Vietnam, and India, adopted
in some areas of the global market, Pakistan faces deliberate trade policies focused on export growth and
significant difficulties in sustaining a competitive integrating their industries into global value chains.
presence. Its participation in worldwide trade These countries emerged as global trade leaders,
platforms, such as the WTO and regional arrange- providing valuable lessons for Pakistan in its efforts to
ments like SAFTA, has been insufficient to gain access boost exports.
to profitable international markets. Pakistan has a) Best Practices in Trade Policies- China, Vietnam, and
limited sources of export goods, with the most promi- India encouraged export growth by adopting interna-
nent sectors being textiles and agriculture, and tional trade policies that fostered manufacturing
limited capacity to expand and capture more market development and integration into global markets.
share in other competitive industries. These countries implemented Special Economic
c) Limited Innovation and Value-Added Products- Zones (SEZs) and provided tax incentives for
Another significant barrier to export growth is export-oriented industries, which helped transform
Pakistan’s lack of focus on innovation and production China into the “world’s factory.” Such measures
of value-added goods. The state excessively relies on minimized infrastructure costs and reduced taxes for
exports of raw materials and basic goods, such as businesses, giving companies a competitive advan-
cotton, rice, and textiles, with limited investment in tage in global markets.
advanced industries or higher value-added products. b) Impact of Regional Trade Agreements on Export
Lack of technological advancement in sectors such Performance- The strong export performance of
as electronics, pharmaceuticals, and automotive these countries has been supported by regional trade
manufacturing further hinders industrial growth. agreements, such as the Regional Comprehensive
d) Export Failures Due to Ineffective Trade Policies- Economic Partnership (RCEP) and SAFTA. These agree-
Pakistan has faced numerous challenges due to ments facilitated easier market access through
unsuccessful and inadequate trade policies, resulting reduced tariffs and simplified trade protocols, contrib-
in failures to achieve goals beneficial to the national uting to the success of member countries in expand-
economy. For example, leather and footwear ing their exports.
manufacturing suffered despite Pakistan being a c) Technological and Regulatory Innovations in
leading producer of leather due to the large livestock Global Trade Policy- The introduction of
population. In the 1990s, Pakistan attempted to e-commerce and digital trade policies has enabled
expand leather exports, but poor trade policies led to countries to expand their export base. For example,
insufficient investment in value addition and the European Union established regulations to
inadequate support for leather processing industries. facilitate digital trade, allowing small businesses to
e) Inefficiencies in Trade Facilitation– Pakistan struggles access global markets through online platforms.
with trade facilitation due to ineffective trade Similarly, in China, government support for digital
policies. Customs procedures face bureaucratic platforms such as Alibaba has propelled e-commerce
inefficiencies, causing delays that add costs and exports, contributing significantly to the country’s
reduce the competitiveness of exports. According to overall export growth.
the World Bank, Pakistan’s customs take an average Key Policy Reorganizations for
of 6–7 days to clear, compared to 2–3 days in
countries like Singapore and the UAE. The lack of Export Development
technological integration in customs processes Pakistan can enhance its export performance by adopt-
further reduces efficiency and transparency in trade ing a comprehensive set of policies that emphasize
facilitation. market diversification, trade liberalization, and reducing
trade barriers. Pakistan can tackle adverse constraints by
Global Trends in Trade Policy
designing reforms in the export sector to address current
Over the years, international trade policy has undergone challenges.
significant reforms and transformations. Successful
1) Diversification of Export Markets- Pakistan has
limited sources of exports, with textiles and agriculture
as the main sectors. The country can enhance exports
by diversifying its export markets. This can be achieved
through strategic bilateral and multilateral trade
agreements with high-growth markets. For instance,
Africa and Latin America are emerging economies; if
Pakistan prioritizes trade agreements with these
regions, it can improve export growth.
ICMA’s Chartered Management Accountant, Sep-Oct 2025 47