The Federal Government of Pakistan has approved a new Strategic Trade Policy Framework (STPF) 2020-2025 to improve annual export targets. This policy aims to enhance the production capacity of the Pakistani enterprises and their ability to distribute and sell products and services more efficiently than the foreign competitors.
The STPF will focus on geographical and product diversification, manufacturing cost reduction through tariff rationalisation, and the pursuit of regional connectivity. The main idea of this trade policy is to raise domestic welfare by shifting profits from foreign to domestic firms. For the implementation of this framework, Rs44.72 billion has been allocated to give subsidies and other support to non-textile sectors. It will include infrastructure development, institutional strengthening, standards compliance, and social and environmental safeguards.
Pakistan’s exports have remained stagnant for the last 10 years and thereby reducing the country’s share in the global export market. However, the surging imports have resulted in a huge trade deficit during the period. The formulation of this framework will provide policy measures to promote exports in the foreign market. Under this policy, an export ecosystem will be developed that focuses on new strategic sectors.
This strategic trade policy framework will promote export-oriented foreign and local investment in the country to increase Pakistan’s export competitiveness by continuously improving the enabling environment for exports and increasing firms’ capabilities.
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