“The success of the ‘Make in Pakistan’ strategy, crucially depends on its complement ‘Sell to the World’.”
World Bank blog presents very sound policy pathways for Pakistan to develop its export base.
However, history suggests that Pakistan has been plagued by export incompetence. Industrial inefficiency and government incompetence has doomed Pakistan’s exports. We have failed to compete with the likes of Bangladesh, Vietnam and India.
During PMLN’s government, Pakistan’s export grew by 0%. This was despite the fact that import duties were at very low levels during that era. Industries didn’t capitalize on that opportunity to make themselves competitive in the international market. Industries in Pakistan have gotten used to protection from foreign competition which in turn has hampered their efficiency.
One fine example is that of Auto-industry. Why has auto-industry failed to establish itself? Auto players have repetitively sought protection against foreign competition which has not only made them incompetent but also has made consumers worse off with high-end prices and low quality cars.
While Pak might have had some success with “Make in Pakistan” but we have failed to complement it with “Sell to the World”.