Govt to raise exports to $46 billion in five years

While conceding lagging behind on account of jacking up exports compared to regional countries such as India and Bangladesh, the government is considering to propose boosting up exports up to $46 billion over five years under Strategic Trade Policy Framework (STPF) from 2020 to 2025.

The government has proposed 18 priority sectors to boost Pak made-ups' share in international trade that had dropped significantly in recent years. There are seven traditional priority sectors such as textile and apparel, leather, surgical instruments, sports goods, carpets, rice and cutler.

There is priority list of 11 products of non-traditional sector to increase exports under upcoming STPF for 2020-25 including engineering goods, pharmaceutical, auto parts, processed food and beverages, footwear, gems and jewellery, chemicals, meat and poultry, fruits and vegetables, sea food and marble and granite.

"The STPF for five years from 2020-25 is in final stages and it will be made public within one-month period," a top official of the Ministry of Commerce said. The proposed draft of STPF states that during the last two decades, the global epicentre of growth has been gradually shifting to Asia, specifically in Pakistan's proximity.

Since 2003, India, China and Bangladesh have increased their market share by 111 percent, 120 percent and 163 percent respectively. The South Asian region has also increased its share in the world market share by 88 percent.

"On the other hand, Pakistan has been an outlier in the high export growth zone by decreasing its share in the global market by 23 percent since 2003. Had Pakistan's exports grown at the Saarc region's average growth rate, its export value would have been $66 billion in FY-2019 instead of $23 billion," the draft of STPF stated.

The Ministry of Commerce has so far proposed export target up to $46 billion over next five years as the export will fetch $26 billion in fiscal year 2020-21, $31 billion in FY-202122, $35 billion in FY-2022-23, $40 billion in FY-2023-24 and $46 billion in FY-2024-25.

The implementation of the policy initiatives is of critical importance to the success of STPF 2020-25 so in order to monitor and evaluate the implementation of STPF 2020-25, it has been decided to constitute a cross functional committee comprising of: a. Prime Minister of Pakistan (Chairman) b. Adviser to PM Commerce and Industries c. Adviser to PM on Finance and Revenue d. Minister for Energy/Power Division, e. Minister for National Food Security and Research f. Governor State Bank of Pakistan g. Secretary Commerce h. Secretary Finance i. Secretary Industries j. Chairman Board of Investment, k. Chairman Federal Board of Revenue.

Other departments or private sector can be co-opted on need basis by the committee. Monthly meeting of the subject committee will be held in order to ensure accountability for the implementation of various policy measures.