Trade Diversification Policy

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The government has approved the Strategic Trade Policy Framework (STPF) 2020-24 to address the issue of trade deficit. For this purpose, the Framework has conceived a well-planned ‘Trade Diversification Policy’ to increase the domestic exports through various ways and means for ensuring sustainable economic growth of the country.

The main aim of this new policy document is to explore new markets in the world for domestic exports and move from traditional markets to non-traditional markets to increase domestic exports. The policy also carries geographical trade and product diversification for exploring new markets and introducing new export products to global markets. Under the government’s ‘Trade Diversification Policy’, ‘Look Africa campaign’ is its important policy component running for the last three years to assess the untapped trading block. Currently, there is a great demand for Pakistani tractors in African markets while mobile phones are exported to this region after the new smart mobile units were established in different cities. Pertinent to mention that in recent times various agreements signed to enhance regional trade with Central Asian Countries (CARs) and their connectivity to Gwadar Port. Similarly, the Transports or International Road Transports agreement was signed with Uzbekistan to promote transit trade that would allow trucks to carry goods from Uzbekistan to Pakistan. To increase its exports, the government has also adopted a regular e-commerce policy to compete in the emerging US$ 30 trillion e-commerce market. Since Pakistan has a nominal share in the e-commerce market, the new policy is hoped to create new opportunities for domestic exports. In addition, the $8 trillion business to business and business to companies’ trade volume could also benefit the country by increasing its e-commerce exports.

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