Nine New Trade Missions Planned Abroad: Boosting Economic Growth and Expanding International Partnerships.
Published on: March 17, 2024.
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Pakistan to Establish Nine New Trade Missions to Boost Exports
In an effort to boost trade with Africa, Europe, and Asia, Pakistan has made the decision to establish nine new trade missions in these regions. Despite its peers surpassing it, Pakistan’s exports have remained stagnant at around $25 billion. The country attributes this failure to its trade missions overseas not effectively promoting its goods and inconsistent domestic policies.
The government plans to allocate an annual budget of Rs70 million for the establishment of these new trade missions. This funding will be included in the next budget for the fiscal year 2024-2025, under the current Pakistan Muslim League-Nawaz (PML-N)-led government. Officials from the Ministry of Commerce have stated that two trade missions will be set up in both Africa and Europe, with an additional five missions in Asia.
The Special Investment Facilitation Council (SIFC) has given formal approval to this plan, as well as the green light for the required cost. It has directed the Ministry of Commerce to seek the allocation of funds in the FY25 budget.
These new trade missions are part of the “Look Africa” policy being pursued by Pakistan to enhance trade. The Pakistan Tehreek-e-Insaf (PTI) government had previously advocated for a similar policy to tap into the $100 billion market in South Africa.
Pakistan’s share in the South African market is currently negligible, as exporters have traditionally focused on the Middle Eastern, United States, and European markets. However, there is great potential in the South African market that can help Pakistan increase its exports.
Pakistan’s trade with the African continent has been stagnant at $3 billion per annum, but it increased to $4.18 billion in the fiscal year 2019-2020. The Ministry of Commerce launched the “Look Africa” policy in August 2017 to boost Pakistan’s market share in African nations.
In Europe, Pakistan has been enjoying the GSP Plus status for around 10 years, which has significantly boosted export volumes. European countries have granted duty incentives of $1 billion to Pakistan. The establishment of two new trade missions in Europe is part of the Pakistani government’s strategy to deepen its engagement with European states and capture a larger portion of the market.
Pakistan has traditionally neglected the Central Asian market, while India has been actively working to undermine its influence in the region. During the previous PML-N government, former prime minister Nawaz Sharif focused on exploring the new Central Asian market. However, Pakistan has been unable to sign a free trade agreement with the Eurasian Economic Union (EEU) due to its lack of diplomatic relations with Armenia, a member of the EEU.
Overall, the establishment of these new trade missions is a proactive step taken by Pakistan to revitalize its export sector and establish stronger trade relations with Africa, Europe, and Asia.
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