ISLAMABAD: The Federal Cabinet on Tuesday approved the revised Strategic Trade Policy Framework (STPF) 2020-25 with a series of policy measures aimed at boosting the annual export target to $57 billion by the end of 2024 -25.
It is the fourth policy framework announced since 2009 by the government which has allocated 44.72 billion rupees for its implementation over the next five years by providing subsidies and other support to non-textile sectors.
In line with the approved policy, an allocation of Rs 13 billion has been allocated for improving product competitiveness over the next five years, followed by Rs 15.22 billion for integration into the global value chain, of which 0 .19 billion rupees for better market access, 12 billion rupees for export diversification and 2 billion rupees. 0.79 billion for branding.
Under this policy, 16.5 billion rupees are allocated for the development of the export ecosystem.
The policy focuses on new strategic sectors to achieve the objectives
This will include infrastructure development, institutional strengthening, standards compliance, social and environmental safeguards.
Pakistan’s exports have remained stagnant over the past 10 years, fluctuating between $20 billion and $25 billion, reducing the country’s share in the global export market by 10.5%. During the same period, China and India increased their share in world exports by 27% and 18% respectively, while Bangladesh recorded an impressive growth of 95%.
However, surging imports resulted in a huge trade deficit during the review period.
The Department of Commerce estimates that the measures announced in STPF 2020-25 will help achieve the export target of $31.20 billion in 2021-22, $37.38 billion in 2022-23, 45.81 billion in 2023-24 and $57.03 billion in 2024-24, respectively.
As part of the new policy, sectoral objectives for the next five years have also been projected. The value-added textile is expected to reach an export target of $15.474 billion in 2021-22, which will reach $30.94 billion by 2024-25. The textile export target is projected at $4.526 billion for 2021-22, which will reach $9.05 billion by the end of 2024-25.
The leather export target for 2021-2022 was forecast at $910 million, followed by $540 million for surgical instruments, $2.037 billion for rice, $300 million for rice and $160 million for dollars for cutlery. Projections for two sectors show massive growth which shows exports of rice will reach $3.098 billion and $1.384 billion of leather respectively by 2024-25.
The policy also focuses on new strategic sectors. Exports of engineering goods are expected to reach $265 million by 2024-25 from $174 million in 2021-22, followed by pharmaceuticals $608 million from $400 million, auto parts $106 million versus $70 million, processed food and beverages $1.536 billion versus $1.01 billion. , chemicals $391 million of $257 million, gems and jewelry $61 million of $40 million, footwear $230 million of $151 million, and meat and poultry $662 million of $435 million , fruits and vegetables $1.369 billion of $900 million, seafood $672 million of $442 million, marble and granite $41 million of $27 million, respectively.
For the implementation of the STPF, it was decided to establish a cross-functional National Export Development Board (NEDB) with membership from all stakeholders. The Ministry of Commerce will provide the secretariat for the NEDB and at least bi-monthly meetings of the Board will be organized to ensure the implementation of the various policy measures.
The council will provide strategic guidance to all relevant institutions and stakeholders responsible for promoting export-oriented foreign and local investment in the country with the aim of increasing Pakistan’s export competitiveness by continuously improving the enabling environment for exports and increasing business capacity. .
Posted in Dawn, December 22, 2021