Monday, March 21, 2011

6-7m people joining the pool of poor each year

Poverty is fast increasing in Pakistan. The presidential task-force however has came up with the same export-driven solutions to address poverty. The lack of focus on the domestic consumer markets, which have failed to evolve in Pakistan, is surprising.

Textile exports are governed by complex quota systems that are driven by the ever evolving geo-political realities. Consumer markets in developed countries are also influenced by the domestic textile producers, who fight tooth-and-nail to prevent cheaper imports in their markets. Increasing textile exports from Pakistan will therefore be a very hard target to achieve.

On the other hand, developing domestic consumer markets for entertainment and other consumption is much easier to achieve. However, this is not favored by the experts who are often trained in macro-economics and do not understand the power of micro-markets.

For record, more than 70% of the US GDP comprises domestic consumption and not trade!

6-7m people joining the pool of poor each year | Newspaper | DAWN.COM
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