Export diversification strategy starts showing promising results: adviser

Staff Reporter BOL News

13th Oct, 2021. 08:56 pm

ISLAMABAD: The export diversification policy has just started showing promising results but there is still a long way to go, a senior government official said on Wednesday.

“Product export diversification has to be coupled with geographical diversification to new markets such as Africa and South America,” he added.

He stated this, while getting a briefing by the Ministry of Commerce on product and geographical export diversification.

During the briefing, the ministry noted that diversification of exports is an important pillar of Pakistan’s export strategy and the ministry has launched a number of initiatives aimed at product and market diversification of exports, including Look Africa Policy, Reconnect Silk Route Policy for Central Asian Republics (CARs), Drawback of Local Taxes and Levies (DLTL), rationalisation of tariff on key imports for non-traditional products, second phase of China-Pakistan free trade agreement (FTA) and other market access initiatives, EU-GSP Plus Scheme, competitive energy prices, early opening during the Covid-19, STPF Policy initiatives, e-Commerce initiatives, etc.

Dawood was informed that the ministry is focusing on diversification within the traditional product sectors such as technical textiles and other specialised product sectors where currently there is little or no export but it has immense export potential.

In addition, the ministry is also focusing on diversification into the non-traditional product sectors.

The ministry said it has conducted in-depth analysis on the degree of export diversification between the average exports between 2015 and 2018, which was then compared with 2020/21. The analysis showed that for the traditional markets, the export of traditional products increased 7 per cent with the net increase of $1.028 billion. In the same markets, the exports of non-traditional products increased 60 per cent, a net increase of $2.022 billion in value.

The adviser was informed that for the non-traditional markets, the export of traditional products decreased 1 per cent or $33 million. In contrast, the exports of non-traditional products increased 77 per cent with an increase of $713 million.

The adviser appreciated the good work done by the ministry in conducting the analysis.

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