While taking to the media, The Prime Minister’s Advisor on Commerce, Textile, Industries and Production and Investment stated that world trade has declined -3% since January 2019 which has resulted in unpredictable fluctuations in the exports of our regional competitors. Pakistan’s exports are sustaining in dollar terms whereas it has shown growth in quantity terms. In terms of quantity, Pakistan’s exports have increase by 7.14%. Pakistan has witnessed export growth in the following sectors in quantity terms: garments by 29%, cement by 50%, basmati by 21%,leather footwear by 26%,pharma by 20 % and plastic (PET) by 30 %. The global commodity prices have also declined. The prices of commodities of Pakistan’s interest have fallen -7.25%. Market access initiatives like Pak China FTA phase –II, unilateral market access by Indonesia on 20 items have sent an encouraging signal to the market and exports are expected to gain momentum in the coming months especially in these two markets. Trade deficit has been a chronic issue for the country. The current government focused on reducing the trade gap by a number of initiatives that include regulatory duties on luxury items, tariff rationalization, incentives through economic reform package, stopping deindustrialization and promoting industrialization. As a result, trade deficit has improved by US$ 3.8 billion (July- April 2018-19).Pakistan is expected to narrow down its trade deficit around 5 billion in the ongoing financial year. Imports have contracted by US$ 4 billion in the last 10 months (July- April 2018-19). The government is strictly following the path trade and economic of reforms. It is moving away from consumption driven to an investment driven economy. It is pushing for “Make in Pakistan.” Import substitution policy is being pursued to achieve critical mass in production leading to economies of scales and enhanced employment opportunities. In July this year, the Advisor on Commerce, Textile, Industries and Production and Investment will visit South Korea, Japan and China for technology transfer, industry relocation, and enhancing market access. He added that in the last 10 months, FDI in manufacturing sector has increased over 50% compared with the corresponding period.
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