Diversification of exports is an important pillar of Pakistan’s export strategy
Pakistan’s ministry of commerce (MOC) conducted an in-depth analysis comparing export diversification between 2015-18 with 2020-21 which showed promising results.
The analysis showed that for the traditional markets, the export of traditional products increased by 7% with a net increase of US$1028 million. In the same markets, the export of non-traditional products increased by 60%, a net increase of USD 2022 million in value.
or the non-traditional markets, the export of traditional products decreased by 1% or USD 33 million. In contrast, the export of non-traditional products increased by 77% with an increase of USD 713 million.
The advisor to the Prime Minister on Commerce and Investment Abdul Razak Dawood was briefed on product and geographical export diversification at the Ministry of Commerce (MOC) on October 13.
The advisor appreciated the effort of MOC in conducting the analysis. “Product export diversification has to be coupled with geographical diversification to new markets like Africa and South America,” Dawood said adding that the policy has just begun to show results but there is still a long way to go in this regard.
During the briefing, he was told that diversification of exports is an important pillar of Pakistan’s export strategy and the MOC 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), the drawback of local taxes and levies (DLTL), rationalization 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.
Dawood was informed that the MOC is focusing both on diversification within the traditional product sectors like technical textiles and other specialized product sectors where currently there is little or no export but we have immense export potential exists. He was also informed that in addition to the above the MOC is also focusing on diversification into non-traditional product sectors.
