Pakistan has formed a new strategic policy to make a big push in exports particularly to the booming regions like Middle East, Africa, South East Asia and China.
The new target to boost exports to an all time high of $35 billion a year means that within three years the amount has to go up by nearly $10 billion, which will require considerable effort by the industry, businesses and services.
The three-year plan called "Strategic Trade Policy Framework (STPF) - 2015-18 has been okayed by the Cabinet Committee on Production and Exports. Low-cost finance, reduction in procedures, cheaper cargo and freight services, regular supply of electricity and gas and greater cooperation between the government and trade organisations are some of the incentives, which are required to achieve the results.
The STPF was planned by Commerce Minister Khurram Dastgir Khan on the back of worrisome performance of the export sector.
Exports during the June 30-ended fiscal year 2015 totalled $24.2 billion, against the official target of $27 billion.Fiscal year 2015 was the third consecutive year of declining exports. Compared to fiscal year 2014, exports in fiscal year 2015 were down 3.5 per cent. The exports were $25.1 billion in fiscal year 2014. The actual exports in fiscal year 2015 were only $25.1 billion against the government's target of $29.9 billion.
The STFP has outlined the potential markets, which will be targeted to enhance exports. The focus for export of high-quality, "Basmati" rice will be the Middle East, Saudi Arabia, the UAE and Iran. Pakistan will make a push for export of its fruits, including oranges, mangoes, vegetables, potatoes, onions and halal meat products to the Middle East, the UAE and Iran.
South East Asia will be the target for export of horticulture products.
The STFP provides Rs20 billion for research and development to expand and upgrade Pakistani exports and to achieve the targets set by this plan.
The government has also decided to undertake immediate steps for expanding farm products, further improving the quality and range of products, especially fruits and vegetables, commodity pricing and to examine the input cost, which will have to be restrained in order to ensure expansion of exports and enable the country to counter foreign competition. The government will have a deeper look at other hurdles being faced by exporters. These issues relate to R&D, technology problems, moving out of the current concentration of traditional products, improvement of resources and financing of the potentially exportable products, upgradation of all products including those needed to match with the new and developing demands of the consumers in foreign markets where incomes, living standards and lifestyles are changing and rising, Commerce Minister Dasgir said.
