ISLAMABAD: The country has missed the export target for the outgoing fiscal year by a wide margin and is unlikely to come closer to the ambitious export goal of $35 billion projected under the Strategic Trade Policy Framework (STPF) 2015-18. The policy implementation was delayed by almost a year and even the support measures announced by the government for boosting exports from July 1, 2016 have yet to be implemented.
\n\u201cWe have not received funds from the finance ministry in July 2016 to provide support to the exporters under the framework,\u201d a source said, adding that an amount of Rs20 billion has been stuck under the Export Development Surcharge (EDS).
\nThe EDS is being charged on export proceeds to be used for the facilitation of exporters. This amount, however, has been used by the finance minister for other purposes over the years, the source added.
\nIn a written reply to queries emailed by Media, Commerce Minister Khurram Dastgir Khan has said the export target of $35bn was fixed in a trading environment which was fundamentally different than what has developed during the last one year.
\nPakistani exporters are struggling in a difficult trading environment where global trade has contracted and most of the countries with similar product-mix have suffered a decline in exports, the minister said.
\n\u201cDue to the multiple exogenous and endogenous factors we think that an adjustment in the export targets would have to be made,\u201d the minister hinted for downward revision in the target.
\nAsked about the falling exports, the minister said that his ministry has been closely monitoring the export performance and is in continuous dialogue with the private and public stakeholders to reverse the trend.
\nFor the sector-specific measures announced in the STPF, the government is trying to ease the pressure on the export sector through multiple measures like improving access to energy, downward adjustment in electricity tariff, lowering of interest rates and zero rating of leading export sectors, the minister said.
\nBesides, he said his ministry has been negotiating for more policy space for export sector within the overall economic policy environment.
\nA trade analyst said that the exports are falling because of structural weaknesses. With the current composition or structure of trade, Pakistan might not even touch the export figure of $30bn in the foreseeable future.
\nPakistan\u2019s textile exports constitute over 55pc of total exports. In total textile, 40pc share is of commodities, while in $6bn worth agriculture products exports the share of commodity is 74pc.
\nSo the rise and fall in commodity prices drastically impacted the country overall exports. In 2009-10, the boom in commodity price edged up Pakistan overall exports to $24.5bn, while the fall in commodity price in 2015-16, the export proceeds was dragged down to $20bn.
\n\u201cCotton price is again picking up and it might help to push up exports to around $25bn in next two to three years but beyond this with current structure will be an imagination,\u201d a trade official said.
\nAccording to data, in 50 countries export profiles which is $40bn each, there is not a single country which has more than 25pc share of commodity component in total exports. Resultantly, only market access is not sufficient to boost exports from Pakistan. There is a dire need to adopt the policy that exports only increases with innovation and value creation, the official added.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: The country has missed the export target for the outgoing fiscal year by a wide margin and is unlikely to come closer to the ambitious export goal of $35 billion projected under the Strategic Trade Policy Framework (STPF) 2015-18. The policy implementation was delayed by almost a year and even the support measures announced […]<\/p>\n","protected":false},"author":1,"featured_media":1310,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-1303","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"\n