ISLAMABAD: The Ministry of Commerce is trying to search out new markets for Pakistani exports through active trade diplomacy. In this regard, MoC is trying 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.
“Bilateral free trade agreements with China, Sri Lanka, Malaysia, Iran, Mauritius and Indonesia are already in place” a well placed source at Ministry of Commerce (MoC) told Customs Today, saying that the 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 as well as enhancing bilateral trade with European countries.
“Moreover, MoC is in the process of negotiating trade agreements with Thailand and Turkey and leading business support institutions are being strengthened” the source added saying that under short-term export enhancement measures, the four product categories including Basmati rice, horticulture, meat and meat products, and jewelry, were being focused with the parallel focus on the following markets: Iran, Afghanistan, China, and European Union.
In this connection, the source observed that Trade Development Authority of Pakistan (TDAP) was undertaking various export promotional activities through trade exhibitions and delegations. The availability of affordable finance for the export sector has considerably improved. The State Bank of Pakistan has further reduced the discount rate which currently stands at 5.75%. The Export Finance Rate currently at 3% for textile sector.
To enhance bilateral trade with other countries, the source said that MoC had announced a number of initiatives including establishment of Exim Bank which to help in enhancing export credit and reducing cost of borrowing for exporting sectors on long term basis and to reduce their risks through export credit guarantees and insurance facilities.
The source said that Services Trade Development Council and Services Trade Wing had been established to promote services trade and strengthen domestic framework to develop services sector of Pakistan. To seek better market access for services sector, Pakistan has concluded services trade agreements with Malaysia and China. To further enhance Pakistan’s export prospects in Services factor, Services Chapter will be incorporated in upcoming trade agreements with Turkey, Thailand and Sri Lanka.
The source added that Trade in Services Agreement (TISA) was currently under negotiation which would liberalize services trade at the multilateral level.
