Strategic Trade Policy Framework: BMP calls for consultation with all stakeholders

Office bearers of Businessmen Panel (BMP) have urged the Ministry of Commerce to initiate comprehensive consultation with all stakeholders to make a valid and reasonable Strategic Trade Policy Framework (STPF). BMP secretaries general for Federal Area and Punjab viz. Ahmad Jawad and Mian Usman Zulfiqar further proposed that inputs and suggestions of all the stakeholders should be attached importance and new policy framework must surmount the previous blunders.
They lamented Pakistan's foreign exchange reserves were falling at an alarming rate of $200-250 million per week for the last six weeks; but, none in the government was talking about it. Referring to exports worth $13 billion and imports amounting $31 billion in last seven months, they apprehended trade deficit would cross $17 billion
They said the STPF 2015-2018 badly failed to meet the target of exports' growth and the Commerce Ministry of all set to formulate the next STPF 2018-23, as the first STPF (2009-12) was formulated in 2009 with the aim of forward-looking and longer-term approaches for hike in exports.
They said the government, through the STPF 2015-18 had claimed to enhance annual exports to $35 billion by June 30, 2018 which was over-exaggerated. They said the policy was aimed at improving export competitiveness. However, the total exports recorded in the financial year 2016-17 were $20.448 billion with the decline of 15.75 per cent as compared to $23.667 billion in 2014-15.
They said exports had shown a declining trend since $25 billion in 2011-12 that was the peak and the continued decline since then, happened due to worse management at the Trade Development Authority of Pakistan. They said even now, government failed to appoint Chief Executive of TDAP and still many blue-eyed persons aspire to join that lucrative position.
However, Ahmad Jawad said, keeping in view the said decline in exports and failure of measures proposed in the STPF 2015-18, commerce ministry would avoid making highly exaggerated projections and instead, focus on measures for constructive and broad-based engagement between the public and private sectors.
He advised the commerce ministry to formulate a 5-year policy making it result-oriented and also revive the Pakistan Horticulture Development & Export Company (PHDEC) so that non-traditional products may contribute in the national kitty. He said in this era of global trade, one should not stick with the textile sector solely. He said horticulture sector had been gaining importance in the world trade for last two decades.
He said in recent years, developing countries had created a space in the international market; but, they were not able to move beyond four to five percent of the world trade, so far, and Pakistan accounted for just 0.3 percent in the world's horticulture trade.
Mian Usman said previous STPF and projected figures of exports were not reasonable. The projected figures, which remained unachieved, actually devalued the positive aspects of the 3-year policy. He rebuffed the commerce ministry's claim that an extensive consultative process spanning over almost a year took place for the launch of the STPF 2015-18, saying it was not correct.
He said Pakistan's overall share of the global export market had declined in comparison to peer economies such as India and Bangladesh, and if we remove the CPEC factor, then nothing was left for us. He urged, to improve this factor, more markets and product diversification, improvement in quality and sophistication of Pakistan's export basket were needed.
"Similarly, we also need to introduce modern trade facilitation measures and a flexible exchange rate mechanism in the country besides reducing the cost of doing business and supportive tax base," he proposed, noting that despite recent investments in the energy sector, the cost of energy was still higher as compared to the regional economies that reduce the competitiveness of local industries.