Page 50 - CMA Journal (Sep-Oct 2025)

Focus Section

2) Elimination of Trade Barriers- Pakistan's exports are Enhancing Global
hindered by high tariffs and bureaucratic hurdles. Market Access
Exports can be enhanced by reducing trade barriers
through lower tariffs on industrial inputs and Developing trade infrastruc-
implementing a simpler tariff structure, which also ture is crucial for integrating
reduces bureaucratic inefficiencies. Minimal tariffs on Pakistan into the global
machinery, raw materials, and chemicals will reduce economy. Improvements in transportation networks,
production costs for domestic industries, particularly digital trade platforms, and port modernization will
textiles and manufacturing, making Pakistani facilitate access to international markets. Reducing trade
products more competitive globally. logistics costs and ensuring timely deliveries will enhance
Pakistan’s competitiveness abroad.
3) Export Incentives- Pakistan can promote export
growth by implementing targeted export incentives, Conclusion
as adopted by successful economies. Examples
include tax breaks for export-oriented industries, Pakistan's exports are hindered by high tariffs and
subsidies for export research and development (R&D), bureaucratic hurdles. The country can enhance exports
and financial support for SMEs engaged in exports. by reducing trade barriers, lowering tariffs on industrial
inputs, and adopting a simplified tariff structure, which
4) Adoption of E-Commerce and Digital Trade- E-com- would also help reduce bureaucratic delays. Minimum
merce is rapidly reshaping global trade, and Pakistan tariffs on machinery, raw materials, and chemicals will
can leverage digital trade instruments to increase lower production costs for domestic industries,
exports. Digital platforms make it easier for small and particularly textiles and manufacturing, making Pakistani
medium-sized enterprises (SMEs) to access global products more competitive in global markets.
markets. Pakistan’s administration should prioritize
policies that facilitate e-commerce, including regula- Pakistan has been unable to perform effectively in trade
tions, e-payment infrastructure, and training for SMEs facilitation due to underdeveloped trade policies.
on digital marketing. Customs procedures also face major challenges,
including bureaucratic inefficiencies that cause delays,
5) Addressing Logistics and Customs Inefficiencies-
increase costs, and reduce the competitiveness of
Pakistan’s export growth is constrained by inefficient
Pakistani exports. According to the World Bank, Pakistan’s
logistics and customs processes. The government can
customs processes take an average of 6-7 days to clear,
boost exports by investing in modern infrastructure at
compared to 2-3 days in countries like Singapore and the
key ports such as Karachi and Gwadar, which handle
UAE. The excessive time consumption is partly due to lack
the bulk of the country’s exports.
of technological integration in customs processes,
6) Case Studies of Countries Successfully Expanding reducing transparency and efficiency in trade facilitation.
Exports- Vietnam reduced tariffs, invested in trade
infrastructure, and improved the ease of doing Countries such as Vietnam have successfully expanded
business, thereby expanding its exports, particularly exports through targeted reforms, including tariff
in textiles and electronics. Similarly, countries like reductions, investments in trade infrastructure, and
Japan, China, and India, through their Foreign Trade improved ease of doing business, particularly in textiles
Policies (FTP), have encouraged export development and electronics. Similarly, Japan, China, and India’s
in sectors such as pharmaceuticals, IT, and textiles. adoption of Foreign Trade Policies (FTP) has encouraged
These countries also offer incentives and lower trade export development in sectors such as pharmaceuticals,
barriers, resulting in export sectors that are among IT, and textiles. These countries also offer incentives and
the largest in the world. lower trade barriers, helping their export sectors become
among the largest in the world.
Boosting Export Innovation
Moreover, policymakers in Pakistan must prioritize export
To increase exports, Pakistan must invest in fostering
growth as a central pillar of the country’s economic
innovation within its industries. Focusing on value-added
development strategy. By implementing these reforms,
products will allow Pakistan to move beyond reliance on
Pakistan can realize the economic benefits of increased
low-cost, raw material exports. The government should
exports, including job creation, improved trade balance,
prioritize R&D funding in key sectors such as textiles,
and long-term economic stability.
agriculture, and electronics to promote high-value-
added products. Partnerships between the government,
About the Author: Sumaira Mukhtar Butt is a PhD Scholar
private sector, and academia can further strengthen
and also serves as a Lecturer at the International Islamic
innovation efforts. University, Islamabad.
48 ICMA’s Chartered Management Accountant, Sep-Oct 2025