ISLAMABAD: The Ministry of Commerce (MoC) terms three elements as key pushers to enhance share of Pakistani trade in global market in coming years.
The share of Pakistan’s export in the global export market has increased by 3.5 percent in 2015-16 as compared to the previous year, whereas the overall trade share has increased by 5.48 percent. Pakistan’s share in the global market is almost similar in the last 5 years.
“Pakistan’s trade share in global market is expected to increase due to upcoming economic activity under CPEC, regional trade arrangements and STPF (2015-18),” sources said.
“Moreover, the MoC is well aware of the real issues affecting the country’s exports, including terrorism, energy crisis, low investment inflows and high cost of doing business” the source added saying that MoC had taken a number of steps relating to high cost of doing business, market access and competitiveness.
The source said that under Strategic Trade Policy Framework (STPF), 2015-18, several initiatives had been introduced to enhance Pakistan’s export competitiveness and institutional strengthening. “A total of Rs. 20 billion will be spent on development of export sector during the next three years” the source added
Moreover, the source said that measures had already been taken to support for the import of plant and machinery to strengthen supply chain and encourage value-addition as well as establishment of Export Promotion Council for Pharmaceuticals and Cosmetics, and Rice Export Promotion Council.
Similarly, Performance Based Incentive (PBI) has been introduced to offset the burden of higher utility costs and local levies and taxes on the export sectors like per unit price based refund at the rate of 4% of 10%” the source maintained.
Under short-term export enhancement measures, the source said that four product categories Basmati rice, horticulture, meat and meat products; and jewellery were being focused with a parallel focus on markets including Iran, Afghanistan, China, and European Union.
“Through active trade diplomacy, MoC is trying to get better market access for the local businesses in international markets by concluding Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) with different countries” the source observed.
Bilateral free trade agreements with China, Sri Lanka, Malaysia, Iran, Mauritius and Indonesia are already in place” the source said adding that the government was in the process of negotiating trade agreements with Thailand and Turkey.
The very opportunity of zero-rated market access in European Union market under GSP Plus scheme had provided a fillip to our exports to our largest market” the source said adding that the leading business support institutions were being strengthened and the Trade Development Authority of Pakistan (TDAP) had been restructured as well as Pakistan Horticulture Development and Export Company revitalized and strengthened.
