DUBAI: Pakistan has formed a new strategic policy to make a big push in exports particularly to the booming regions like Middle East Africa South East Asia and China.
The new target to boost exports to an all time high of 35 billion a year means that within three years the amount has to go up by nearly 10 billion which will require considerable effort by the industry businesses and services.
The three-year plan called “Strategic Trade Policy Framework (STPF) – 2015-18 has been okayed by the Cabinet Committee on Production and Exports. Low-cost finance reduction in procedures cheaper cargo and freight services regular supply of electricity and gas and greater cooperation between the government and trade organisations are some of the incentives which are required to achieve the results.
The STPF was planned by Commerce Minister Khurram Dastgir Khan on the back of worrisome performance of the export sector.
Exports during the June 30-ended fiscal year 2015 totalled 24.2 billion against the official target of 27 billion.Fiscal year 2015 was the third consecutive year of declining exports. Compared to fiscal year 2014 exports in fiscal year 2015 were down 3.5 per cent. The exports were 25.1 billion in fiscal year 2014. The actual exports in fiscal year 2015 were only 25.1 billion against the government’s target of 29.9 billion.
“All steps will be taken to enhance export to the 35 billion level by 2018 by expanding production of all currently exported items and those with a future potential in the changing global market” said Finance Minister Ishaq Dar who chaired the Cabinet Committee on Production and Exports.
“The government is cognisant of Pakistan’s declining trend in exports. In view of this we will take all possible steps to reverse the trend” Dar said.
“While formulating the new strategy for higher exports we have taken into account the potential of the industry and the economy as well as the hurdles in growth which restrained the output. These hurdles include the continued shortage of electricity and gas rising cost of doing business appreciation of the rupee against the dollar and other currencies as well as the growing foreign competition particularly to our textiles” Khurrum Dastgir said.
The STFP has outlined the potential markets which will be targeted to enhance exports. The focus for export of high-quality “Basmati” rice will be the Middle East Saudi Arabia the UAE and Iran. Pakistan will make a push for export of its fruits including oranges mangoes vegetables potatoes onions and halal meat products to the Middle East the UAE and Iran.
South East Asia will be the target for export of horticulture products. India Sri Lanka Afghanistan and Africa are identified for export of cement. Pakistan will offer a freight subsidy for export of cement to Africa. Items marked for export to China are rice cotton yarn fabrics and ready-to-wear garments. Wheat rice meat and cement are identified for export to Afghanistan. In order to expand trade border marketing support development expansion of banking facilities improvement of the rail-link and infra-structure development will be undertaken. Products destined for the Iran market will include provision of warehousing support product branding “halal” certification.
