ISLAMABAD: The exports from Pakistan are projected to reach at US$ 26,187million in fiscal year 2019-20 from US$ 24,656 million estimated for theFY2018-19, official document revealed.
The Annual Plan (2019-20) envisages higher growth in exports sector in thebackdrop of positive global outlook, improved domestic infrastructure, lowcost energy supply to exports sector and competitiveness gained due todepreciation of the rupee.
On account of higher growth trajectory, imports are expected to marginallyincrease by 0.8 percent and reach the level of US$ 53,664 million in2019-20 from an estimated total of US$ 53,248 million for 2018-19, implyingtrade deficit of US$ 27,476 million in 2019-20.
The higher expected increase in exports coupled with buoyant remittancesand further improvement in balance on trade in services would help incurtailing the current account deficit.
The current account deficit has been projected to be contained at US$ 8,312million (3% of GDP) during 2019-20 as against estimated deficit of US$13,179 million (4.7% of GDP) by the end of outgoing fiscal year.
Meanwhile, the Capital inflows are projected to decrease from estimated US$374 million in 2018-19 to US$ 350 million in 2019-20.
General government disbursements during 2019-20 are expected to remain atthe level of US$ 10,493 million against US$ 8,240 million estimated for2018-19 whereas amortization is projected at US$ 10,533 million for 2019-20against US$ 7,007 million estimated for 2018-19.
Foreign direct investment (net) have been targeted at US$ 4,340 million for2019-20 against estimated US$ 1,690 million by the end of 2018-19 .
In order to strengthen the external sector of the economy effective policymeasures were planned to bolster exports, curbing unnecessary imports,enhancing remittances and FDI inflows, it added.
Read Top Stories
According to the plan, Strategic Trade Policy Framework (STPF) 2018-23 forenhancing the exports and Trade related investment Policy framework (TRIPF)to attract FDI in export-oriented sectors is being devised insynchronization with other policies so that targets become achievable.
Moreover, issues pertaining to trade licensing, dispute resolutions andadvance taxes will be addressed.
For making the tariff structure a true reflection of trade policypriorities and removing anomalies in the tariff structure, which wascausing distortions between sectors, draft National Tariff Policy (NTP)would be approved.
According to the plan, the real effective exchange rate (REER) remainedovervalued during past few years, which eroded the competitiveness ofcountry’s exports in international market. However, depreciation in Pakrupee since December 2017 resulted into positive impact on REER, it saidadding, the flexible exchange rate regime will be followed during the planperiod.
A more robust inflow of remittances is expected in the backdrop ofincentives announced under Home Remittance Account (HRA) by State Bank ofPakistan (SBP), effective implementation of Pakistan Remittance initiative(PRI) scheme, labor market diversification measures and strict complianceof anti-money laundering (AML) laws/rules to comply with FATF by thegovernment. Qatar has offered to provide 0.1 million jobs to Pakistaniworkers and negotiations are underway to finalize the agreement; once theagreement is materialized it will contribute further in enhancement ofremittances.
The Ministry of Overseas Pakistanis & HRD will finalize National Emigrationand Welfare Policy for Overseas Pakistanis. Committee for SkillsUp-gradation and Overseas Employment Promotion will proactively assessmanpower demand abroad in various sectors on regular basis and will arrangeskilled manpower accordingly.
