Strategy of export diversification is beginning to bear fruit: Abdul Razak

A senior government official said on Wednesday that the pakistan’s export diversification policy has only recently begun to yield positive results, but that there is still a long way to go.

According to him, “product export diversification must be combined with geographic diversification to new markets such as Africa and South America.”

He made this statement while attending a briefing by the Ministry of Commerce on product and geographic export diversification. He was speaking at the time of the briefing.

In the briefing, the ministry stated that product and market diversification are important components of Pakistan’s export strategy and that the ministry has launched a number of initiatives aimed at increasing product and market diversification, including the Look Africa Policy, Reconnect Silk Route Policy for Central Asian Republics (CARs), Drawback of Local Taxes and Levies (DLTL), rationalization of tariff on key imports for non-traditional products, and the second phase of the China-Pakistan Free Trade Agreement.

Dawood was advised that the ministry is concentrating on diversification within traditional product areas such as technical textiles and other specialized product sectors, where it is now little or no export but where there is enormous potential for export growth in the near future.

Aside from that, the ministry is putting emphasis on diversification into non-traditional product segments.

According to the ministry, an in-depth investigation was carried out on the degree of export diversification between the average exports between 2015 and 2018, which was then contrasted with the average exports between 2020 and 2021. Following the study’s findings, it was discovered that the export of traditional items increased by 7% to conventional markets, amounting to a net increase of $1.028 billion. Exports of non-traditional products climbed by 60 percent in the same markets, resulting in a net rise in the value of $2.022 billion in total.

The adviser was informed that the export of conventional items to non-traditional markets had declined by one percent, or $33 million, since the previous year. Exports of non-traditional products, on the other hand, surged by 77 percent, totaling $713 million more than the previous year.

The adviser praised the government for the excellent work it had done in conducting the investigation.

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