ISLAMABAD (APP) - The Adviser to Prime Minister on Commerce and Investment, Abdul Razak Dawood on Wednesday said export diversification strategy has started to show promising results.
“Product export diversification has to be coupled with geographical diversification to new markets such as Africa and South America,” he said.
The Adviser said while getting a briefing by the Ministry of Commerce on product and geographical export diversification at the Ministry of Commerce, said a press release.
During the briefing, he was informed that diversification of exports was 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.
The ministry has launched the initiatives 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 FTA and other Market Access Initiatives, EU-GSP Plus scheme, Competitive Energy Prices, Early Opening During COVID-19, STPF Policy Initiatives, E-Commerce Initiatives, etc.
He was informed that the Ministry was focusing on diversification within the Traditional product sectors like technical textiles and other specialised product sectors where currently there was little or no export but the country has immense export potential.
He was also informed that in addition to the above the Ministry was also focusing on diversification into Non-Traditional product sectors.
He was informed that the Ministry 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 by 7 percent with net increase of $1,028 million. In the same markets, the export of non-traditional products increased by 60 percent, a net increase of $2,022 million in value.
He was informed that for the Non-Traditional Markets, the export of traditional products decreased by 1% or $ 33 million. In contrast, the export of non-traditional products increased by 77 percent with increase of $713 million.
The Advisor appreciated the good work done by the Ministry in conducting the analysis. He said that the policy has just begun to show results but there was still a long way to go in that regard.