Trade, com­merce con­trib­utes 17pc to GDP in FY2015-16

Pakistan Observer - - ECONOMY WATCH -

IS­LAM­ABAD—The trade and com­merce contributed about 17 per cent to­wards the GDP dur­ing out­go­ing fi­nan­cial year, of­fi­cial sources said. The sources said that it also added to the na­tional econ­omy by fa­cil­i­tat­ing trade, im­prov­ing ex­port com­pet­i­tive­ness and per­sis­tently try­ing to re­duce the cost of do­ing busi­ness so as to achieve higher mar­ket share for the Pak­istani prod­ucts in the global mar­kets. In or­der to fur­ther in­crease its con­tri­bu­tion to­wards the eco­nomic growth, there was a need to in­crease ex­port com­pet­i­tive­ness and im­prove do­mes­tic value chains, the sources said.

Sus­tain­able in­crease in the eco­nomic growth re­quires a con­tin­u­ous ex­pan­sion in the coun­try’s ex­port base. The com­merce and in­dus­try are both in­ter­de­pen­dent sec­tors; hence re­vival of the in­dus­try would have im­pact on the com­merce sec­tor as well. By in­vest­ing in tech­nol­ogy, Pak­istan will shift from pro­duc­ing low value-added prod­ucts to high-value prod­ucts. The En­gi­neer­ing De­vel­op­ment Board, PTA, PCSIR and other re­search and tech­nol­ogy in­sti­tu­tions would play key role in the indi­geni­sa­tion of tech­nolo­gies.

Dur­ing July-April (2015-16), ex­ports de­creased to $17 bil­lion from $19 bil­lion, reg­is­ter­ing a de­crease of about $2 bil­lion. The rea­son for this can be at­trib­uted to the in­ter­na­tional prices of com­modi­ties, in­crease in cost of pro­duc­tion due to rise in en­ergy prices and other in­put costs. Dur­ing this year, the Min­istry of Com­merce was al­lo­cated Rs875 mil­lion for de­vel­op­ing the sec­tor. The ma­jor projects im­ple­mented in 2015-16 were: pur­chase of equip­ment, fur­nish­ing, cur­ricu­lum de­vel­op­ment and train­ing of Pak­istan In­sti­tute of Fash­ion De­sign La­hore (Rs755mil­lion), and Re­struc­tur­ing of Pak­istan In­sti­tute of Trade and De­vel­op­ment (Rs508 mil­lion).

Upon com­ple­tion, th­ese projects would con­trib­ute to cre­at­ing trained and qual­i­fied man­power in the fields of fash­ion and de­sign, tex­tile, fur­ni­ture, gems and jew­ellery and footwear to strengthen the ex­port-base by pro­vid­ing new prod­ucts in the world mar­ket. In ad­di­tion, the re­struc­tured Pak­istan In­sti­tute of Trade and De­vel­op­ment will serve as a cen­tre of ex­cel­lence for train­ing and re­search in the in­ter­na­tional trade and com­merce. In view of the im­por­tance of im­prov­ing the coun­try’s in­vest­ment cli­mate and to ac­tu­al­ize the tar­get of the Vi­sion 2025 of rank­ing Pak­istan in the top 50 coun­tries on the World Bank’s Ease of do­ing busi­ness rank­ing, the gov­ern­ment was im­ple­ment­ing an ac­tion plan for im­prov­ing Pak­istan’s busi­ness en­vi­ron­ment.

The Do­ing Busi­ness Sec­re­tar­iat at the Fi­nance Divi­sion was co­or­di­nat­ing with all the stake­hold­ers for de­vel­op­ment of their re­spec­tive Do­ing Busi­ness Re­form Plans. The strat­egy for im­prov­ing the com­merce sec­tor in­cludes de­vel­op­ment of lu­cra­tive and ac­ces­si­ble mar­kets and bet­ter com­pet­i­tive­ness of prod­ucts. The tar­iff and non-tar­iff trade bar­ri­ers are the main hur­dles in ex­pan­sion of trade. Ef­forts would be for re­duc­ing th­ese hur­dles through pol­icy in­ter­ven­tion.

Trade fairs and ex­pos would be or­ga­nized fre­quently to cap­ture new mar­kets. Re­gional trade would be strength­ened. The GSP Plus trade con­ces­sions have proved to be help­ful in cap­tur­ing the Euro­pean Union mar­kets to a cer­tain ex­tent. How­ever, the pro­vi­sion of the ba­sic in­puts, like elec­tric­ity and gas, would be en­sured for the timely delivery of or­ders. The re­cent­ly­launched Strate­gic Trade Pol­icy Frame­work 2015-18 has given em­pha­sis on the fol­low­ing tar­gets for de­vel­op­ment of the com­merce and trade sec­tors are in­crease in ex­ports up to $35 bil­lion by 2018, im­prove ex­port com­pet­i­tive­ness, shift from fac­tor-driven econ­omy to ef­fi­ciency driven and in­no­va­tion-driven econ­omy and in­creas­ing share in the re­gional trade.—APP

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.