New trade policy after budget: commerce minister

KARACHI: The government will announce a new trade policy, focusing export-led economic growth in the country, a minister said on Thursday.
“We are likely to come up with a new trade policy framework for 2015-18 after unveiling the next year’s budget,” Commerce Minister Khurram Dastagir Khan told reporters on the sidelines of a seminar on GSP Plus organised by Trade Development Authority of Pakistan.
“Trade policy is at the very centre of the government’s approach to spur economic growth, increase exports and encourage investment in industries,” he said.
Khan said total exports to European Union (EU) rose by 20 percent to $6.38 billion during 10 months of 2014 as compared to $5.3 billion in the same period of 2013. Pakistan’s exports of textiles to EU increased from $3.6 billion to $4.4 billion as a result of GSP (generalised scheme of preferences) Plus. Garment exports to EU grew by 28 percent, home textile by 30 percent and towels by 23 percent.
Many products, which were previously in the sensitive category for Pakistan under the General Arrangement from 2005 to 2013, became duty free, resulting in growth of plastic products’ export to $66.22 million, leather product to $45 million and footwear to $90 million.
“EU is Pakistan’s biggest trading partner and the country would like to further strengthen this relation for quantum leap in bilateral trade,” the minister said.
“The government is very keen to see seamless graduation from GSP plus to a free trade agreement,” he added.
The minister said Pakistan exporters are also exploring new markets in South Africa, South America and East Asia. “However, they are only exporting traditional products. We need to diversify our exports’ basket,” he added.
EU Ambassador Lars Gunner Wigemark said there is scope for diversification of Pakistan’s exports to the EU as the exports are dominated by a few sectors, including textiles and leather and agricultural products.
“The GSP plus concession provides an opportunity for Pakistan to move up the value chain and export higher value products, providing increased profits for the industry and more jobs to Pakistani workers,” Wigemark said. He, however, said Pakistan must deliver on its commitment to implement the 27 conventions – a prerequisite for maintaining GSP plus status.
“Progress on the GSP plus status will be reviewed every two years with the first report due to be submitted to EU member states and the parliament by January 1, 2016,” Wigemark said.
The ‘GSP Plus Business Guide’ prepared by Pakistan Institute of Trade and Development, EU, International Trade Center was also launched on the occasion. The purpose of the book is to facilitate exports and to educate the new comers about the requirements of a very lucrative market.