Pakistan projects exports to grow by $5b over next three years

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KARACHI—Pakistani Minister for Commerce Makhdoom Amin Fahim announced a three-year national trade policy on July 28, projecting a US$5 billion growth in exports.

The Minister said the government estimates that exports will increase six percent in the 2009-10 fiscal year (FY) that began on July 1, a ten percent boost in 2001-11 and a 13 percent in increase 2011-12, Fahim said.

Pakistan’s exports are expected to earn US$23 billion by FY 2011-12 up from the current level of $18 billion in 2008-09, he added. The Minister hopes that by FY 2011-12 the global competitiveness ranking of Pakistan will improve from 101st place to 75th.

Fahim said to enhance exports, the government will overcome the issues of energy shortages, and capital costs. He also plans to diversify export markets in the U.S. and Europe, and sign more free trade agreements on the pattern of China, Malaysia and Sri Lanka. To facilitate the diversification of export, Pakistan will cut its customs duty to zero on the import of man-made fibers (other than Polyester) that are woven into exportable finished products.

“For the first time, the government of Pakistan introduced insurance coverage for foreign buyers, inspectors and outsourcing agents who negotiate imports from Pakistan,” Qamar-uz-Zaman Chaudhry, a Ministry of Commerce spokesman said.

Chaudhry added that the government has also set-up a fund to promote research and development in export sectors that will help them enhance the appeal of their products in foreign markets.

In the new trade policy, the government has allowed disabled Pakistanis to import duty-free cars, and established a hedge fund for the exporters, he added.

In a recent interview with Trade Policy, Fahim pointed out that during 2008-09, the external trade of Pakistan witnessed an unprecedented economic downturn, (especially in the major markets of export), as consumption decreased in developed countries and global trade shrank by 9 percent.

Pakistan’s textile market is one of the major losers. To tackle the problem the government will announce a new textile policy shortly, which is expected to enhance the sector’s exports and provide incentives to the industry.