The government's negligence towards development of trade can be judged from the fact that finance ministry has released only Rs 1 billion for Strategic Trade Policy Framework (STPF)-2009-12, during the current fiscal against the allocated amount of Rs 2.5 billion.
Well-placed sources told Business Recorder here on Friday that the current status of funding for STPF is not satisfactory at all. "Not even a single rupee was released by the Finance Division during fiscal year 2009-10 while against the allocated amount worth Rs 2.5 billion for the year 2010-11, only Rs 1 billion has so far been released which would be utilised to settle pending claims", sources disclosed.
Sources said that the demand for the remaining Rs 1.5 billion has been forwarded to Finance Division. The commerce ministry has developed a three-year Strategic Trade Policy Framework (STPF) 2009-12. The overall objective of STPF is to achieve sustainable high economic growth through export with the help of policy and support interventions by the government, industry, civil society and donors.
This will be a medium term plan acting as a catalyst in the revival of domestic commerce and international trade in Pakistan, with the precise objective of bringing about a structural transformation in Pakistan's exports. The STPF aims to achieve some targets by June 30, 2012. These targets include; Merchandise Export Value of US $23.5 Billion from the current level of US $17.8 billion out of which 5% or more would be engineering goods; Value addition of cotton from current US $1 billion/ million bales to US $1.5 billion/ million bales; Regional trade to 25% of our global trade, presently at 17%; and Free Trade Agreements with major trading partners ie USA and European Union.
The estimated expenditure under STPF for three years is Rs 35.22 billion. This fund will be met from Export Investment Support Fund (EISF) set up in the budget 2009-10. The trend of export growth has continued well into the 2010-11 gaining momentum. Exports grew by 27 percent in July-March 2010-11. As per details of 2010-11 (July-March) Basmati rice (5percent), Fish and Fish Preparations (25percent), Meat (54percent), engineering goods (10percent) has performed really well.
In textiles, which form 57percent of our exports, the growth has been 31 percent. The value added sub-group readymade garments export has increased by 38 percent which is a very encouraging sign. Import during first 9 months of the current fiscal have increased by 16% rising prices of oil have played role in increasing import bill. The import of petroleum crude has increased by 28 percent (July-March) during 2010-11.
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