WITH Pakistan grappling with a range of economic crises, one cannot help but question the direction we are moving in. A recent report by the International Monetary Fund (IMF) suggests inflation will persist in the foreseeable future. It is clear that Pakistan cannot afford luxuries, and the government must move quickly to enforce strict austerity.

We need to improve our profile of exports, but the United States and many European countries, including the United Kingdom, Germany and the Netherlands, are in economic recession, leading to a decrease in demand of goods.

Practically, this means that Pakistan`s export target of $100 billion in four years is now nothing more than a mere illusion.There is a limit to what and how much we can export to the countries in the Middle East because of their size and consumption quantum. Besides, the region has shown clear signs of favouring India overPakistan as atradingpartner.

China is a leading global exporter, but is grappling with dwindling exports due to weakening demands and falling prices in Europe and the US. In contrast, the industrial sector in Pakistan is facing the additional challenge of rising cost of production which further undermines our competitiveness in the global market.

In the face of economic challenges faced by the country, what we need to focus on is the small and medium enterprise (SME) sector, which forms the backbone of the national economy, and provides employment to a significant portion ofthe nationalpopulation.

Unfortunately, unfairly imposing higher electricity cost on SMEs compared to the larger undertakings has already driven many SMEs to the brink of closure.

As things stand currently, the incumbent government must take a cue from Bangladesh, which today exports twice as much as Pakistan. Addressing the current economic crisis is no easy task, for sure. But it can at least be logical.

Adil Hamf Godit London