ISLAMABAD: Pakistan’s trade share in the global market had increased by 5.48 percent during the last five years.
This was revealed by Federal Minister for Law and Justice Zahid Hamid during the question hour in the National Assembly. The minister said Pakistan’s export share in the global market in 2015 had increased by 3.50 percent as compared to 2014. He said the country’s trade share in world markets was expected to further increase due to the upcoming economic activity under the China-Pakistan Economic Corridor (CPEC), regional trade arrangements, and Strategic Trade Police Framework (STPF).
Hamid said the government was well aware of the real issues affecting the country’s exports, such as terrorism, energy crisis, low investment inflows, and high cost of doing business. He said several steps were taken relating to the high cost of doing business, market access, and competitiveness.
A total of Rs20 billion would be spent on the development of export sector during the next three years, he added. Other measures included support for the import of plant and machinery to strengthen the supply chain and encourage value-addition, establishment of export promotion council for pharmaceuticals and cosmetics and Rice, and Performance Based Incentive (PBI) to offset the burden of higher utility costs and local levies and taxes on the export sectors ie, per unit price based refund at four of 10 percent over last year’s exports.
Hamid also said that under the short term export enhancement measures, four product categories were being focused, including basmati rice, horticulture meat and meat products, and jewellery with the parallel focus on the following markets Iran, Afghanistan, China, and the European Union.
He said government was 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.
Bilateral free trade agreements with China, Sri Lanka, Malaysia, Iran, Mauritius, and Indonesia were already in place, he added. Moreover, the government was in the process of negotiating trade agreements with Thailand and Turkey.
The minister said the opportunity of zero rated market access in the EU market under GSP Plus scheme had provided a fillip to our exports for our largest market. Replying to another question he added that Pakistan had not so far acceded to Information Technology Agreement for two main reasons, including the FBR’s reluctance – as removal of duties may result in loss of revenue, and the Ministry of Industries and Production which opined that without adequate tariff protection, there would be no incentive to set up IT-related industries in Pakistan.
However he added the Ministry of Industries has since modulated it’ s stance on the agreement. Meanwhile the minister informed the House that Pakistan and China were negotiating the second phase of Pak-China Free Trade Agreement.
