Pakistan will fail to achieve export target: FPCCI
Report sheds light on issues being faced by specific sectors
PHOTO: EXPRESS
KARACHI:
Pakistan will be unable to achieve its target set under the Strategic Trade Policy Framework (STPF), according to a report prepared by the Federation of Pakistan Chambers Of Commerce and Industry (FPCCI) Research and Development Department.
The study was conducted in consultation with the Export Advisory Committee of FPCCI, which was formed in compliance with the prime minister’s directives to submit proposals for enhancing exports.
Exports projected to grow to $28 billion in fiscal year 2018-19
“The target set for STPF 2015-18 is $38 billion. Data of 10 months shows that only $19.3 billion worth of exports have been recorded,” an FPCCI official said requesting anonymity.
“On a monthly basis, less than $2 billion of exports are recorded. So, if the same trend continues for another two months, then crossing $25-billion barrier would be an achievement,” the official added.
Pakistan has been facing immense pressure as foreign exchange reserves continue to fall amid widening trade and current account deficits.
Ministry seeks rebate to take IT exports to $10 billion
The FPCCI report sheds light on export-oriented sectors including textile, which has the largest share at 61% in Pakistan’s exports. It also says Pakistan has set an export target in textiles far below its competitors.
Bangladesh has set a target to achieve textile exports worth $60 billion, while India’s increase alone is set at $30 billion.
The report also identifies various problems being faced by the textile sector including high cost of doing business, multiple taxes and surcharges.
Focus only on boosting exports is a bad strategy
“Low production of cotton bales, limited implementation of government announced support in STPF and Textile Package, uncompetitive utility and raw materials to the textile sector are major reasons for failing to achieve export targets,” the official added.
Published in The Express Tribune, May 22nd, 2018.
Pakistan will be unable to achieve its target set under the Strategic Trade Policy Framework (STPF), according to a report prepared by the Federation of Pakistan Chambers Of Commerce and Industry (FPCCI) Research and Development Department.
The study was conducted in consultation with the Export Advisory Committee of FPCCI, which was formed in compliance with the prime minister’s directives to submit proposals for enhancing exports.
Exports projected to grow to $28 billion in fiscal year 2018-19
“The target set for STPF 2015-18 is $38 billion. Data of 10 months shows that only $19.3 billion worth of exports have been recorded,” an FPCCI official said requesting anonymity.
“On a monthly basis, less than $2 billion of exports are recorded. So, if the same trend continues for another two months, then crossing $25-billion barrier would be an achievement,” the official added.
Pakistan has been facing immense pressure as foreign exchange reserves continue to fall amid widening trade and current account deficits.
Ministry seeks rebate to take IT exports to $10 billion
The FPCCI report sheds light on export-oriented sectors including textile, which has the largest share at 61% in Pakistan’s exports. It also says Pakistan has set an export target in textiles far below its competitors.
Bangladesh has set a target to achieve textile exports worth $60 billion, while India’s increase alone is set at $30 billion.
The report also identifies various problems being faced by the textile sector including high cost of doing business, multiple taxes and surcharges.
Focus only on boosting exports is a bad strategy
“Low production of cotton bales, limited implementation of government announced support in STPF and Textile Package, uncompetitive utility and raw materials to the textile sector are major reasons for failing to achieve export targets,” the official added.
Published in The Express Tribune, May 22nd, 2018.