Exports fail to find place in high market: PC

TAHIR AMIN & WASIM IQBAL

ISLAMABAD: Planning Commission (PC) on Thursday said that Pakistan exports have not been able to enter in high-value market and fetch good return due to lack of value-addition by exports sectors and diversification of products, terming it as one of the factors of the country’s balance of payment problem.

“Value addition in Pakistan currently is around 2-3 percent, but ideally it should have around 12 percent to find a place in high markets with good returns,” said Dr Muhammad Azeem Khan, Member Food Security and Climate Change, Planning Commission while speaking at a seminar organized by the Centre for Rural Economy, Planning Commission on successful rural development models in Pakistan.

He said that all know that there are huge challenges, although some positive signs were seen in terms of improvement in growth level achieved during last few years. “But if we want to compete, we are far behind and need to produce in competitive manner what we are producing,” he added.

Member Planning Commission further said that value chain is another challenge. Value addition is around 2 to 3 percent and ideally the country should have around 12 percent value addition. With 2-3 percent level Pakistan cannot have viable and ideal products. The country is always struggling to export raw material at very low cost. It is not possible to have presence in high markets at higher prices and that is why the country is confronted with balance of payment issue and the economy is suffering on all these accounts.

The Member highlighted another flaw in planning and strategy implementation while saying that private sector cannot directly submit plan, but need to have some public sector institution. All the development partners are present at the gross root level and if the country want to success it is not possible without taking on board the development partners.

Khan said that climate change is another challenge for the country. He said that from the current state of surpluses in major food staple, the country is at comfortable level. But when look at the nutrition, there are many challenges as under nourishment problem is there. He further said that Planning Commission is finalizing the final stage of 12th five year plan.

Dr Aamir Irshad, CEO Centre for Rural Economy (CRE), said 12th

five year plan has included rural transformation in their priority list by understanding the sensitivity of the rural issues in Pakistan.

He further said that sustained growth, economic development and poverty reduction are vital for the economic, social and political viability. In Pakistan, the achievements of these goals have been constrained by near absence of an effective national strategy and public policy. This is manifested in a pervasive lack of necessary infrastructure, well-functioning institutions, profitable opportunities and skill-oriented capacities. Realizing the importance of the rural economy and the emphasis from the Pakistan Vision 2025, the ministry of Planning Development and Reform had decided to set up CRE to facilitate the implementation of knowledge based polices.

Food and Agriculture Organization (FAO) Pakistan Representative, Mina Dowlatchahi said that effective rural development strategies are central in achieving the SDGs, under the leave no one behind principle. To achieve zero hunger and eradicate poverty, a territorial people center and knowledge based approach to rural development, empower local institutions and partnership with private sector with a focus on agriculture with go a long way.

She stated that today’s concept of successful rural development models concerns not only with improvements in economic growth, per capita income, and production output but it also includes the social assessment of changes in the quality of life, such as improvement in health and nutrition, education, environmentally safe living conditions, and reduction in gender and income inequalities and food security. She added that rural development is essential part of the process for structural transformation characterized by diversification of the economy away from agriculture.

Qazi Azmat Isa, Chief Executive Officer of Pakistan Poverty Alleviation Fund (PPAF), shared his thoughts about integrated rural development programmes and successful case studies in South Asia and Pakistan. He said the inclusion of the rural inhabitants is the key in rural transformation; the ownership must be shared with the local community for sustainable development. The current rural development programs under implementation in the country have bottom-up and demand driven approaches. They adopt a common approach to rural development, social mobilization on the belief that poor people have an innate potential to help themselves, that they can better manage their limited resources if they organize and are provided technical and financial support.

Abdul Wajid Rana (Program Leader, IFPRI Pakistan) talked about post-devaluation rural development in Pakistan and said that we are depending on the Union Councils but need to develop rural institutions to empower the rural community.

Zafar Ul Hassan (Chief, SDGs, Ministry of Planning, Development and Reform) shared the progress on Sustainable Development Goals (SDGs) by Planning Commission, Pakistan. He said that Planning Commission have development national framework for minimum imperative of sustained development and working on the provincial frameworks.

Four distinguished guest speakers have shared their valuable experiences in technical session, on different dimensions of rural development in Pakistan. Hans G P Jansen (Senior Agriculture Economist, World Bank, Pakistan) said that Punjab Province has been reached self-sufficiency in wheat which is a major achievement but the agriculture productivity is poor, and yield gaps in major crops is hazardously high. He further said Punjab yields are 30-50% low in the neighboring countries of the region, reasoning that Pakistan is at the bottom of agricultural R&D spending which is lower in South Asia. He argues that the agriculture policy practicing in Pakistan became irrelevant due to rapid change due to globalization and need to have smart market reform and public investments & incentives.

Nabeela Farman (Manager KPK, SMEDA) discussed how rural development mechanizes through entrepreneurship and stated that favorable entrepreneurial ecosystem is prerequisite of this time. There is lacking of entrepreneurial culture for the 64% youth which below 29 years of age in Pakistan, caused by the complicated procedure to access finance, typical issues of women entrepreneurs and lack of relevant information to initiate own business. She highlighted the support services providing by SMEDA, including proto-type product development, common facility centers, business development centers, fruit dehydration centers, wool spinning units, economic revitalization of Khyber, and business skills development centers.

Belinda Chanda (Programme Analyst, ILO) talked on means promoting decent work in the rural economy, a source of livelihood of for more than 1 billion people with contribution of 20 to 60 percent in GDP. She highlighted the poor working condition caused killed 170,000 agriculture workers each year, unawareness of health issues in rural workers and low skills of rural manual workers. She said ILO is working to promote decent work in the large agro-food sector by using two-pronged programme strategy (institutional development and direct support).

There is no national youth policy in Pakistan which homicide our productive potential said by Adeel Qaiser (Programme Director of Oxfam Pakistan). He introduced Oxfam initiate about Rural Hub (RH) in two districts (Layyah & Jamshoro) to train youth on life skills for social entrepreneurship. He said rural hub centers are not basically training centers but like rural shops for the young boys and girls to share their ideals and products and wish to be entrepreneur. Oxfam facilitate the youth by place for linkage, connectivity, training programs, mentorship and targeted counseling.

Dr Stephen Davies (Senior Research Fellow, IFPRI, Pakistan) conclude the session by beliefs that the inclusive rural transformation demarcated as a process in which agricultural productivity can sway, increasing marketable surpluses, expanded off-farm employment opportunities, better access to public services and infrastructure, capacity to influence policy all lead to improved rural livelihoods and inclusive growth in Pakistan.