However, persistent structural distortions cannot coexist indefinitely with export ambition.
10. Synthesis: Distortion vs Transformation
The real debate is not:
Cheap energy vs innovation.
It is:
Remove structural distortion so innovation can scale.
Competitive input pricing is a precondition. It is not a strategy.
Innovation is a strategy. It is not a substitute for rational cost structure.
Both must occur simultaneously.
Strategic Reality Assessment
Evidence-based conclusions:
- Pakistan’s industrial energy costs are regionally uncompetitive.
- Capacity payments structurally inflate tariffs.
- Textile closures indicate sectoral stress.
- Bangladesh’s export dominance cannot be explained by tariffs alone.
- Currency depreciation alone does not guarantee export elasticity.
- Governance credibility deficit remains a binding constraint.
Can Pakistan Reach $30 Billion in Textile Exports?
Technically, yes.
Structurally, only if:
- Energy pricing is rationalized without cross-subsidies.
- Refund cycles are automated and time-bound.
- Industrial modernization accelerates measurably.
- Trade diplomacy secures market access leverage.
- Fiscal discipline reduces macro volatility.
- Innovation investment shifts export composition upward.
Without synchronized execution, the target remains aspirational rhetoric.
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