ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday directed the Ministry of Commerce to formulate and present its strategy to double national exports in the next five years after consulting relevant stakeholders and entrepreneurs to deal with the mounting economic and financial challenges facing the country.
The prime minister issued to instruction at a high-level meeting on the development of the export sector at a time when Pakistan’s economy is dealing with pressing financial constraints and striving for sustainable growth.
The government’s effort to bolster the economy aims to increase foreign exchange earnings and reduce the trade deficit to address the urgent need for economic rejuvenation and stability.
“The prime minister instructed to facilitate exporters in the e-commerce sector, who manufacture their products in Pakistan and export them worldwide,” said a statement issued by his office. “He instructed the commerce ministry to immediately resolve the issues of exporters of the Made in Pakistan brand.”
The prime minister also instructed to involve stakeholders in the information technology, home appliances, textiles and other sectors to boost their exports.
Suggestions for the development of the export sector in Pakistan were presented at the meeting.
Pakistan has been particularly focusing on the IT sector to increase its exports.
According to official figures released today the country’s IT export remittances shot up by $257 million, or 14.9 percent, to $1.98 billion between July 2023 to February 2024 in comparison to $1.72 billion reported during the corresponding period last year.
PM Sharif sets goal to double Pakistan’s exports in five years amid economic challenges
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PM Sharif sets goal to double Pakistan’s exports in five years amid economic challenges
- The prime minister asks the authorities to facilitate exporters in the country’s e-commerce sector
- Pakistan’s IT export remittances shot up by 14.9 percent to $1.98 billion between July 2023 to February 2024
Pakistan stresses increasing trade, economic engagement with Europe amid EU-India deal
- Deputy PM Ishaq Dar chairs meeting to review measures to strengthen Pakistan-EU economic and trade cooperation
- Free trade agreement grants Indian exporters sweeping tariff-free access to EU, Pakistan’s second-largest export market
ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Monday stressed the importance of deepening trade and economic engagement with the European Union (EU) amid the bloc’s recent free trade agreement with India.
India and EU last month announced they had successfully concluded negotiations for a free trade agreement with the EU, which Indian Prime Minister Narendra Modi described as the “mother of all trade deals.” The agreement grants Indian exporters sweeping tariff-free access to the EU, Pakistan’s second-largest export market. European Commission President Ursula von der Leyen said the deal created a free trade zone of two billion people.
The main concern for Pakistan is that the India-EU deal may significantly reduce Islamabad’s tariff advantage under the EU’s Generalized Scheme of Preferences Plus, which allows duty-free access for many Pakistani exports in return for commitments on labor rights, human rights and governance. Pakistan’s foreign office, however, has said it continues to view its trade relationship with the EU, particularly under the GSP Plus framework, as mutually beneficial.
Dar chaired a high-level inter-ministerial meeting to review measures aimed at strengthening Pakistan’s economic and trade cooperation with EU on Monday, the foreign ministry said.
“DPM/FM underscored the importance of deepening and expanding trade and economic engagement with the EU, noting that the EU remains a key economic partner for Pakistan, particularly under the GSP Plus framework,” the statement said.
He highlighted that Pakistan has successfully completed four biennial GSP Plus reviews, reaffirming Islamabad’s commitment to fully meeting its obligations under the scheme to expand mutually beneficial trade opportunities.
The meeting was attended by the federal minister of law and senior officials as well as Pakistan’s ambassador to the EU.
The development takes place as Pakistan’s exports dwindle. After rising 5 percent to $32.1 billion last fiscal year, the Pakistan Bureau of Statistics reported that exports fell 9 percent to $15.2 billion in the first half of the current year through December.
Pakistani industrialists and financial analysts have urged the government to reduce domestic production costs, particularly high power tariffs. EU accounts for a substantial share of Pakistan’s exports, particularly textiles and garments.
“The EU-India FTA will have a definite impact on Pakistan’s textile exports to the EU,” said Shankar Talreja, the head of research at Karachi-based Topline Securities Ltd, told Arab News last month.
“Pakistani companies’ competitive advantage to compete against a giant like India needs to be restored in the form of regionally aligned energy tariffs and policy certainty.”
