Pakistan formulates region-specific policy to increase exports

KARACHI: Pakistan has formulated an Africa-specific policy to increase the country’s trade with the region from the existing four billion dollars, a minister said on Monday.

Foreign Minister Shah Mehmood Qureshi said the government formed ‘Engage Africa’ policy to explore the $500 billion African market.

“Africa is a big market. The Engage Africa policy would help in increasing (our market share),” Qureshi said, speaking at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

Qureshi said financial wellbeing is a prerequisite for effective diplomacy with the world. “Foreign policy objectives can’t be achieved unless Pakistan is economically prosperous.”

The minister said there has been no value-addition and product diversification on the part of industrialists and therefore it is quite difficult to find new markets and tap the potential.

Qureshi further said government finalised an agricultural research program with China to increase agricultural efficiency and produces. FPCCI President Anjum Nisar informed the minister that exports are declining and trade gap is widening.

“Cost of doing business has gone out of range, and we can’t compete with the competitors,” Nisar said. “A balanced and sustainable policy is needed so that the available export potential could be exploited.”

FPCCI president said there has been de-industrialisation for the last five years due to high cost of doing business, unavailability of utilities and political uncertainty. “Let alone foreigners, even the local investors are reluctant to take exposures.”

Meanwhile, Secretary Commerce Ahmed Nawaz Sukhera told APP in Islamabad that Pakistan wants to double its trade with African region from $4 billion to $8 billion by tapping the huge potential existing in the region.

Sukhera said the government is focusing to enhance production of goods in all priority sectors to exploit new potential markets and increase the country’s exports. “Pakistan-Africa trade is well below its true potential,” he added. “Both sides want to enter into long-term partnerships, which would be proved mutually beneficial.”

The secretary said there is a need to enhance Pakistan-Africa trade and develop banking and transportation channels. Pakistan is on a path of economic growth and attracted foreign direct investment from leading investors in the last year, he said.

Sukhera said the country held Trade Development Conference 2020 in Nairobi, Kenya, which is gateway to Africa. Kenyan ministry of commerce and East African Association presented business opportunities at the conference. Leading Pakistani companies and African companies held more than 1,000 business-to-business meetings on the sidelines of the conference.

The secretary said Pakistani exporters of rice, sports, pharmaceutical, and fans arranged business-to-business and government-to-government meetings during the conference. Overall, 2,200 business-to-business meeting was conducted between Pakistani and African businesses to enhance the trade cooperation between both the sides.

“The government is working on strategic trade policy framework for changing the trade strategies according to the new market trends,” he added.

“The government also focuses on different potential regions including Africa, North America for increasing economic and business cooperation.” He said the government wants to promote ecommerce for giving the new employment opportunities to the local youth

Sukhera said finalisation of second free trade agreement with China, exploration of African and Russian markets and last review of generalised scheme of preferences-plus with the European Union are huge success of the government.