New Strategic Trade Policy Framework approved

Published November 10, 2021
Prime Minister Imran Khan chairs a meeting of the federal cabinet on Tuesday. — PID
Prime Minister Imran Khan chairs a meeting of the federal cabinet on Tuesday. — PID

ISLAMABAD: The cabinet on Tuesday approved the Strategic Trade Policy Framework 2020-25 after a delay of more than two years.

The framework envisages measures to enhance enterprises’ capacity to produce, distribute and sell products more efficiently than their competitors.

This is the fourth strategic framework announced since 2009 by the government which allocated Rs45 billion for its implementation in the next five years by giving subsidies and other support to non-textile sectors.

Unlike the past frameworks, the government this time did not announce an export target linked with the support being given to the sectors.

Cabinet does not announce export target

The cabinet has asked the finance division to work out a realistic export target and submit it to the Economic Coordination Committee for approval.

Earlier, it was proposed that the policy would help increase export target to $37bn by end of its implementation.

Earlier for 2009-12, 2012-15 and 2015-18, the commerce division notified three policy frameworks, but none of them was successful in achieving its objectives, especially regarding the export targets due to various reasons. The previous frameworks also failed to alter the export paradigm.

Officials told Dawn that the government would soon approve the Textile and Apparel Policy 2020-25, laden with cash subsidies and lower rates on utilities to boost production and export of value-added textile products.

The support for the textile sector runs in billions of rupees, especially under the head of subsiding utility cost.

The cabinet will approve shortly a scheme for payment of Drawback of Local Taxes and Levy, which is simply a cash subsidy on export proceeds from the country. This will be an additional subsidy for the sector.

The State Bank of Pakistan will also offer hefty incentives to the entrepreneurs and the scheme will be made part of the textile policy. It is proposed to allocate a hefty amount for the Export Finance Scheme and Long Term Financing Facility.

Main focus of the policy framework 2020-25 will be on geographical and product diversification, reduction of cost for manufacturing through tariff rationalisation, pursuit of regional connectivity and Look Africa policy, enhancement of market access through free trade and preferential trade agreements.

The framework will also focus on facilitation of logistics and tracking under TIR and enhancement of regional connectivity for access to Central Asian Republics, Turkey and Iran, through them to Europe and Russia.

The policy is dynamic in nature and will be subject to course correction based on constant monitoring and evaluation. There will be an institutionalised mechanism for robust monitoring and implementation of the policy to minimise policy implementation gaps, which have traditionally remained a weak link due to multi-organisational roles in the export ecosystem.

In order to oversee the policy implementation, a cross functional National Export Development Board (NEDB) has already been constituted under the chairmanship of the prime minister and comprising senior public sector officials of relevant organizations and private sector representatives.

Published in Dawn, November 10th, 2021

Opinion

Editorial

Security policy unveiled
Updated 17 Jan, 2022

Security policy unveiled

PAKISTAN’S freshly unveiled National Security Policy has broadened the traditional concept and included economic...
Bold decisions
Updated 17 Jan, 2022

Bold decisions

IT is a double blow within a matter of days. The Islamabad High Court’s order last week to demolish a navy golf...
17 Jan, 2022

Rohingya camp blaze

A HUGE blaze in a refugee camp housing members of the Rohingya community in Bangladesh last week has left up to ...
16 Jan, 2022

Omicron threat

AS Pakistan grapples with the fifth coronavirus wave fuelled by the Omicron variant, the state must take timely...
Updated 16 Jan, 2022

Grim picture

There is much the govt can do to create an environment free of repression and coercion so that democracy is strengthened.
16 Jan, 2022

Larkana jail unrest

THAT Larkana Central Prison authorities had to resort to the excuse of “cleaning the jail” to shift 13 dangerous...