Pakistan’s exports to reach $50 billion in FY 2023: adviser

ISLAMABAD: Adviser to the Prime Minister on Commerce and Investment Razak Dawood has expressed the hope that by the last fiscal year 2023 of the present government, the country’s exports would reach $50 billion by following the policy of trade diversification in potential trade sectors and markets.

Export diversification, focus on non-traditional sectors and increasing exports to new markets, including the African market, would not only enhance the volume of the country’s exports, but would also help achieve the export targets,the adviser told this during an exclusive interview with APP.

“Made in Pakistan” is the government’s top priority trade policy, which aimed at introducing Pakistan’s traditional and non-traditional export sectors and local products in the international trade market.

The adviser said the exports of mobiles and motorcycles from Pakistan would start within the same trade policy.

The exports of these two products to the global market would usher in an era of exporting engineering products from the country.

At present, the share of engineering goods exports in the global trade market was 51 per cent, Dawood said, adding that Pakistan now wanted to make a name for itself in the world in non-traditional sectors, including engineering and pharmaceuticals.

The adviser said the Karachi-based electrical and electronics goods company ‘Inovi Telecom (Pvt) Limited has just exported the first consignment of 5,500 “Made in Pakistan” 4G mobile phones to the Middle East. This would be the beginning of an era of high value-added exports from Pakistan, he said.

This also marks the beginning of the product diversification from traditional to non-traditional sectors.

“I urge other mobile manufacturers in Pakistan to emulate this example and aggressively export their products,” Dawood said, adding that in the recent past, when the United States Secretary of States for Commerce visited Pakistan, he had identified in his trade facilitation scheme Generalised System of Preferences (GSP) a number of traditional trade products in which Pakistan had not yet shipped goods to the US market.

The US GSP programme provides non-reciprocal, duty-free tariff treatment to certain products imported to the United States from designated Beneficiary Developing Countries.

Most of these items came from Pakistan’s traditional commercial products, including textiles, which were now being worked on diligently.

“Geographical trade diversification and search for new markets will further increase our exports,” he said, adding that in this regard, the government wanted to increase exports to Europe and the United States by making its trade goods globally competitive.

Replying to a question, the adviser said now the manufacturing of motorcycles has started in Pakistan and with this Pakistan would start exporting up to 10,000 motorcycles, which would be increased up to 30,000,000 motorcycles annually in the coming years.

The Japanese company ‘Honda’ has decided to set up its own manufacturing plant in Pakistan, which will make Pakistan a hub of motorcycle manufacturing, the adviser said, adding that they will start exporting motorcycles worth $30 million from Pakistan in the coming years.

Dawood said: “We have decided to move towards import substitution, which will increase our exports and create more industries in the country.”

Pakistan’s exports touched the mark of over $25 billion over the last fiscal year 2020/21, and now the government has set an export target of $38.70 billion to $40 billion for FY 2021/22.

The export target for the previous year was $25.30 billion for items and $6 billion for the services sector, he said.

The country’s information technology-related exports witnessed a growth of 47 per cent, which indicates that the IT exports crossed the mark of $2 billion.

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