Islamabad, Pakistan, 10/14/2021 / Islamabad News Desk /
Non-traditional product exports to conventional markets increased by 60% over the last five years, indicating a higher degree of product diversity.
Traditional markets include European nations, the United States, and Afghanistan, while non-traditional markets include African and Central Asian countries. Traditional Pakistani products include cotton-based textiles and rice, whereas non-traditional items include engineering goods, tractors, and some fruits.
The commerce ministry compared the 3 years of the Pakistan Muslim League-Nawaz administration (2015-2018) to the current year (2020-21) of the PTI government.
The information was presented during a conference here on Wednesday headed by Adviser to the Prime Minister on Commerce Abdul Razak Dawood.
According to an official release, the research reveals that conventional product exports grew by 7 percent, amounting to a net rise of $1.028 billion. Non-traditional item exports grew by 60% in the same conventional markets, resulting in a net rise of $2.022 billion in value.
In terms of geographical diversity, an identical shift was seen. Traditional product exports to non-traditional markets fell by 1%, or $33 million. In contrast, non-traditional product exports to non-traditional markets rose by 77 percent, or $713 million.
Diversity of exports is an essential foundation of Pakistan’s export strategy, as per the conference, and the commerce ministry has introduced a number of initiatives aimed at product and market diversification of exports, such as the Look Africa Policy, the Reconnect Silk Route Policy for Central Asian Republics, and the Drawback of Local Taxes and Levies.
According to the meeting, the ministry is concentrating on diversification within traditional product categories such as technical textiles as well as other specialised product sectors with little or no export but enormous export potential. Furthermore, the ministry is working on product diversification into non-traditional product areas.
According to the advisor, product export diversification must be combined with geographic diversity to new markets such as Africa and South America. He stated that the policy had only just begun to have benefits, and that there was still a long way to go.