After a delay of more than two years, the cabinet has launched its Strategic Trade Policy Framework 2020-25 to enhance the capability of existing businesses and entities to produce, distribute and sell products at competitive prices. The policy is the fourth in line since 2009 when the government decided to allocate a specific budget to this cause. The policy includes multiple targeted subsidies that can help the export-yielding sectors of the economy. The recently launched trade framework is different from the previous frameworks as the government has not announced an export target for the sectors that will receive subsidies under the policy.
The primary focus of the 2020-25 trade policy is on geographical and product diversification, reducing the cost of manufacturing through tariff rationalization, increased regional connectivity, and encouraging market access through free trade and preferential trade agreements. The framework also focuses on an improved system of logistics and tracking for the export of goods via road to different central Asian countries, Russia, Iran, Turkey and Europe.
The government aims to make the policy dynamic and is open to course correction based on evaluation and results. Moreover, the government adds that its current trade activities are in line with the trade policy introduced.
Recently, Pakistan was given the GSP plus status by the European Commission. It will facilitate the integration of Pakistan’s exports into the European market effectively. In addition, Pakistan has also initiated several regional trade agreements with Iran, Turkey, and Azerbaijan. These agreements are also in-line with the trade policy recently proposed.
Leave a Reply