Buoyed by its ‘success’, govt may give export package a makeover

Commerce minister says additional sectors could be included, expresses satisfaction at progress

LAHORE: Pervaiz Malik, the recently-appointed commerce minister, said that high input cost has hindered Pakistan in getting a fair market share in foreign markets, but claimed that the Rs180-billion package announced by the government at the start of this year has helped the country’s exports.

Pakistan exports increased 11.8% year-on-year during July-August, a welcome sign for an economy struggling to contain falling foreign exchange reserves and ever-increasing domestic as well as foreign debt.

Exports have been declining for the past four years, but recent figures suggest that a change may be in the offing. While the increase may not be enough to reduce trade deficit, officials seem pleased that the trend of falling exports has reversed.

Thrilled by what the government thinks is a result of the export package, Malik said that the Economic Coordination Committee in its last meeting has reviewed its impact, and is now considering expanding its scope to include other sectors as well.

While addressing the inaugural session of the 18th Textile Asia 2017 International Trade Fair, the minister said that several concrete steps were being taken to increase the volume of exports.

Malik said that the prime minister has directed to constitute a committee to undertake a detailed analysis of the impact of the export package, proposing some changes in scope and coverage.

Meanwhile, addressing the ceremony, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central Chairman Ijaz Khokhar said that the initiative to introduce the textile machinery fair has been taken with the collaboration of E-commerce Gateway Pakistan to increase productivity and competitiveness.

Khokhar said that the China-Pakistan Economic Corridor (CPEC) has opened up a momentum of opportunities for industrial cooperation between the two countries. Under CPEC projects, the government is keen to link China’s Small Manufacturing Enterprises with Pakistani SMEs.

“China needs markets for its products and searches for raw material while Pakistan needs access to technology to boost its industrialisation,” he said

He asked the government to consider value-added textile as a key priority area, making all possible efforts to set the right policies and incentives.

Khokhar further said that the apparel segment is the highest value-added link in the entire textile value chain. Though the global market is highly competitive, Pakistan’s apparel industry has proved its strength by pushing exports by 5.55% in 2016-17.

PRGMEA Vice Chairman Jawwad Chaudhry said that the garments industry is the least energy- and capital-intensive sector and is well suited for Pakistan to generate economic growth and employment.  He said that textile is the only sector which contributed $12.5 billion (60%) of exports in fiscal year 2016-17and $12. 45 billion (59%) in 2015-16.

E-commerce Gateway Pakistan Chief Executive Officer Dr Khursheed Nizam said that Textile Asia is a landmark event, which has provided an effective podium for joint ventures and collaborations among the local textile industry and international entrepreneurs.

More than 50,000 trade and corporate visitors are expected during the three days. More than 600 foreign delegates are participating as well. The exhibiting countries include China, France, Germany, India, Italy, Korea, Taiwan, Turkey, Austria, Czech Republic, the UK and US.

Published in The Express Tribune, September 17^th, 2017.

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