Pakistan’s Strategy to Diversify Exports has begun to bear Positive Results
The Trade Diversification policy of the Pakistani government aims to bring about growth in the country’s domestic exports by creating new markets and adding new products for Export trade. Pakistan’s exports have been relying on 10 countries for trading in their traditional markets for the past 70 years.
According to Abdul Razak Dawood, advisor of trade and commerce to the Prime Minister, the Pakistani government is launching new products into new markets. The Ministry is also prioritizing the diversification of existing traditional products with the objective of increase in their exports. He has also stated that the government has brought down the tariffs and customs duties to about 0% on raw materials to increase Pakistan’s exports significantly.
As per the study carried out by the Ministry on the diversification of export trade, a comparison between two periods was made, i.e., 2015-18 and 2020-21. The study says that the volume of conventional items exported to traditional markets jumped by just 7%, which is valued at more than a Billion US Dollars. On the other hand, the volume non-conventional exported at the same periods had a significant increase of 60%, valuing more than two Billion US Dollars.
The advisor, Abdul Dawood, also stated that MSMEs (Micro-small and Medium Enterprises) that run their operations on online / E-commerce platforms have a better, easier, and more efficient way to export products than conventional enterprises. Therefore, the new policy also focuses on expanding the utilization of E-commerce platforms across the country, thereby helping the local business grow. He further emphasized that the future of Pakistan’s economy deeply lies in its exports, particularly the exports related to Information Technology (IT).
As per reports, it is said that 2021 showed signs that the country’s imports were slowly declining, whereas the exports had risen by 25% compared to the previous year.