MoC fails to implement Strategic Trade Policy

KARACHI – Though over two years of the announced three-year ‘Strategic Trade Policy 2009-12’ have passed, the Ministry of Commerce (MoC) is yet to implement most of its trade initiatives. The ministry had announced that it would undertake various steps, as per the Strategic Trade Policy Framework (STPF), in order to address economic challenges faced by Pakistan.
According to sources, the ministry was unable to initiate almost 12 new projects, for which around Rs 4.0 billion had been allocated. Besides, trade policy aimed at creating a special fund of Rs 2.5 billion for product development was also invisible.
MoC was also reluctant to establish a “Services Export Development Fund”, a Rs 2.0 billion project for promoting the country’s export of services, stipulated in Strategic Trade Policy. Sources claim that non release of the required fund had halted progress. The Trade Development Authority of Pakistan (TDAP) has continuously demanded the said fund for services export.
Sources state that the SEDF, established under the Trade Policy of 2009-10, to be administered by a 13-members Board would utilise money for providing assistance in the form of reimbursable grants to Pakistan Service Exporters. In addition, it would conduct pre-feasibility or feasibility studies for international projects, set up services offices abroad, hold national/international conferences, maintain a database of service exporters, set up institutions for international evaluation of services and would assist educational institutions in developing quality human resource relevant for exports promotion.
The ministry had also proposed to set up an Export Investment Support Fund (EISF) in order to channelise public investments to selected sectors. The policy was also aimed at overcoming the pressing supply-side constraints such as shortage of energy, cost of capital, adverse travel advisories and enhanced competitiveness of textile.
The policy focuses on new investments, modernisation of machinery and increasing total factor productivity in key areas such as wholesale, storage and warehousing, transport, regulatory environment, promotion of modern business and taxation practices.
The policy would also promote the export of agro-food, gems and jewellery, services, leather and leather products and other non-traditional items. It will diversify export markets, particularly the country’s major trading partners like US and EU, in addition to China, Malaysia and Sri Lanka.
However, sources in the ministry claimed that non-release of fund from the Ministry of Finance (MoF), under the STPF, was causing a delay in implementation of various projects.