The government has fixed the export target of US$ 18.84 billion for 2009-10; a six percent hike over last year's target. The Trade Policy envisages an export growth of 10 percent (US$ 20.724 billion) for 2010-11 and 13 percent (US$ 23.418 billion) for 2011-12.
The Commerce Minister said his Ministry realizes that a paradigm shift is required for the country's firms and entrepreneurs to become globally competitive and export those products which are high in demand in the international market.
Through this initiative, the government plans to overcome pressing supply side constraints such as the shortage of energy, cost of capital, etc. It is also expected that competitiveness of the country's textiles and clothing will be enhanced with the help of a new Textile Policy due to be announced shortly.
The trade policy promises to deepen and diversify export markets, particularly the country's major trading partners such as the US and EU as well as countries with which Pakistan has signed free trade agreements such as China, Malaysia and Sri Lanka. It will promote trade in services and embark on domestic commerce reform and development in key areas such as wholesale and retail trade, storage and warehousing, transport, regulatory environment, promotion of modern business and taxation practices.
The trade policy will integrate local productive capacity with globally integrated supply chain; coordinate and leverage skill upgradation programmes in the priority sectors, giving special importance to the skills of women workers; acquire and upgrade technology level; promote enterprise and entrepreneurship development by setting up an Enterprise and Entrepreneur Fund; rationalize the tariff policy keeping in view the structure of value-addition in various industries; provide a clear policy framework on the development of chemical sector; continue the successful initiatives provided to the pharmaceuticals sector in the previous trade policy, help introduce necessary regulations and initiate new development programmes.
It is evident in the trade policy that the Ministry of Commerce has devised a comprehensive long term strategy for significantly improving Pakistan's export of services. It intends to achieve these objectives by providing incentives to facilitate technology acquisition, adoption and replacement, with the twin objectives of energy efficiency and environmental protection. It will achieve this by launching a comprehensive Leather and Leather Products Export Plan in consultation with the major players in the leather sector. It will also launch a comprehensive plan for the promotion of export of services, actively participate in the Doha Development Agenda negotiations in order to maximize the gains from trade diplomacy; make free trade agreements a success in terms of favourable terms of trade for Pakistan and engage with the larger trading partners like US and EU for greater market access and utilization of Reconstruction Opportunity Zones for providing zero duty facility for exports to US.
Other the key areas that the trade policy will address for the next three years include Establishment of Technology, Skill and Management Upgradation Fund of Rs. 3 billion, providing support of 25 percent on brand development activities to the surgical instruments, sports goods and cutlery sectors, creating a special fund of Rs 2.5 billion for 25% freight subsidy for fisheries sector if live seafood products are exported by air and making exports zero-rated.
According to Makhdoom Amin Fahim, it is expected that by 2012, Pakistan's competitiveness ranking will improve from 101 to 75. Its share of engineering exports will increase from 1.5 percent to 5 percent and the value addition of cotton will increase from US$ 1000 to US$ 1500 per bale, while regional trade will expand from 17 percent to 25 percent.
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