ISLAMABAD, Dec. 13 (INP-WealthPK): Pakistan can follow the example of the Republic of Korea for a thriving economy by enhancing its exports and discouraging imports, experts say.
Pakistan Institute of Development Economics (PIDE), in collaboration with the Embassy of the Republic of Korea, organised a seminar on the theme “40 Years of Diplomatic Relations between Pakistan and Korea: Trade, Investment and human resources” at PIDE, Islamabad.
Speaking on the occasion, Ambassador of South Korea Suh Sangpyo said the bilateral relations between Korea and Pakistan are at a turning point as the two countries will celebrate the 40th anniversary of relations next year. He said that Pakistan is moving in the right direction regarding regulations and ease of doing business. Small Korean companies face contract issues, but large companies have different experience. He said the Korean companies are helping the Pakistani companies to improve their quality and capacity.
Dr Nadeemul Haque, Vice Chancellor of PIDE, in his address said the economic ties between Pakistan and South Korea remain strong despite these difficult economic times.
“In this global village, both countries must work together. There are lessons to be learned from Korea’s economic strength, and PIDE is an excellent platform to strengthen ties between the two countries,” he said.
Dr Muhammad Zeeshan, Research Fellow at PIDE, said in his presentation that the Korean economy has an excellent balance between imports and exports, even though export volume is much larger than imports. He added that Korea’s GDP (gross domestic product) is five times that of Pakistan.
Pakistan needs to focus on maximising the volume of exports and reducing imports. Currently, Pakistan only exports clothe, fish, and cotton to South Korea and imports automobiles. There is a dire need to increase exports. Turning a trade deficit into a trade surplus is only possible by correcting the shortcomings.
“Our trade deficit is increasing because of our weak policies and practices. Pakistan cannot achieve a trade surplus with this performance. We can overcome the trade deficit through an enabling environment for local and foreign investors,” he added.
Asif Khan from the Board of Investment (BoI) said that they are working on regulatory modernisation to remove regulatory bodies that are a trade barrier to direct or indirect investment. He added that the investment council has reformed 115 departments and 31 different sectors under Pakistan Regulatory Modernisation Initiative (PRMI) to bring foreign direct investment (FDI) into Pakistan and help local investors.
Nasir Kashani from Overseas Employment Corporation (OEC) said that South Korea has increased the work permit quota from 1,100 to 2,400 for Pakistan. Pakistanis are allowed to work in South Korea through this system.
Moon Young Kim, Managing Director of Korea Trade Investment Promotion Company (KOTRA), said that many Korean manufacturing companies are working in Pakistan. He suggested establishing an ombudsman office in Pakistan to easily access the Prime Minister’s Office. He said it is necessary to improve the accessibility of markets with other countries in Central Asia and Africa. Kim pointed out that the laws in Pakistan are good, but implementation is an issue.
