Pakistani Policies on Boosting Exports

• Supply of energy for export oriented sectors for FY2022 was:

US cents 9/kWh for electricity
US dollars 6.5/MMBtu for RLNG
US dollars 9/MMBtu for Captive Power (self-power generation)

• Release of 16 billion rupees under Duty Drawbacks of Taxes and Levies till 3rd
quarter of FY2022

• Duty-free import of textile machinery

• Maximum loan size given by SBP for a single project under Long Term Financing
Facility (LTFF) increased from 2.5 billion rupees to 5 billion rupees
• Mark up rate on LTFF loans for non-textile industries reduced to 5%.

• Rupee based discounting under Exports Finance Scheme (EFS):

Incentivizes timely arrival of FX proceeds into the interbank

• Changes in FX regulations to facilitate export on digital platforms:

Introduction of B2B2C mechanism for SME’s

• e-Tajarat portal launched in February 2022 to provide educational and

marketplace opportunities to freelancers
Export Facilitation Scheme 2021

• Eligible Users
Exporters (Manufacturers, Commercial, Indirect), Common Export Houses,
Vendors, International Toll Manufacturers.

• Scheme Highlights
Duty-free imports for authorized users, zero-rated local supplies, support
for SMEs, automated processes via WeBOC and PSW, emphasis on post-
clearance compliance checks and audits.
Strategic Trade Policy Framework 2020-2025
Pillars of STPF 2020-25

• Elevating Exports
Rendering exports as the main source of foreign exchange earnings.
• Unified Effort
Collaborative national approach across ministries, departments, and private
sectors for coherent policies.
• Make in Pakistan
Strategic interventions in priority sectors aligning trade policies with national
economic frameworks.
Strategic Trade Policy Framework 2020-2025
Guiding Principles of STPF 2020-25

• Zero Export Duties

Elimination of export-related duties and taxes.
• Competitive Energy Pricing
Regionally competitive energy rates for export-driven sectors.
• Simplified Support
Streamlined, certain, and time-bound export support initiatives.
• Effective Implementation
Institutionalized monitoring to minimize policy gaps.
 Strategic Trade Policy Framework 2020-2025
Critical Enablers of STPF 2020-25

• Trade and Payments Focus

Enhancing competitiveness, integrating into global value chains, and nurturing
the export ecosystem.

Priority Sectors under STPF 2020-25

• Traditional Sectors
Textile, Leather, Surgical Instruments, Sports Goods, Carpets, Rice, Cutlery.
• Developmental Sectors
Engineering Goods, Pharmaceuticals, Minerals, Processed Food, Footwear, Gems
and Jewellery, Chemicals, and more.
Strategic Trade Policy Framework 2020-2025
National Export Development Board (NEDB)
A cross-functional board led by the Prime Minister to oversee STPF
implementation.
Bilateral Relations
China-Pakistan
• Awareness campaign for un-utilized tariff lines under CPFTA-II.
• Bilateral agreement and commercial accords in progress.
CARs Region
• Pak-Uzbekistan Preferential Trade Agreement signed, offering tariff concessions.
• Business forums with Uzbekistan & Tajikistan resulted in multiple MOUs.
Development of Economic Corridor
• Transit Trade Agreement signed with Uzbekistan.
• Negotiations initiated with Tajikistan and Kazakhstan for Transit Trade
Agreements.
Bilateral Relations
Middle East Region:
• Exports to Middle Eastern markets increased by 24%.
• Participation in EXPO 2020 garnered significant attention and awards.
• Resumed FTA negotiations with the GCC after thirteen years.
• Joint Working Group established with Syria.
Africa Region:
• Increased exports to Africa through the Look Africa Policy.
• Successful organization of the 2nd Pakistan Africa Trade Development
Conference.
• Enhanced B2B relations and commercial presence in Africa.
Bilateral Relations
United States:
• USA remains the largest export market for Pakistan (20% share).
• Main exports include apparel, textiles, surgical goods, etc.
Russia:
• Trade deficit with Russia (US$ 191.7 million in July-Feb FY2022).
• Conducted the 3rd Joint Working Group meeting on Trade & Investment.
United Kingdom:
• Trade balance in favor of Pakistan (US$ 911.13 million in July-Feb FY 2021-22).
• Post-Brexit, UK committed to maintaining similar market access for Pakistani
products.
Bilateral Relations
United States:
• USA remains the largest export market for Pakistan (20% share).
• Main exports include apparel, textiles, surgical goods, etc.
Russia:
• Trade deficit with Russia (US$ 191.7 million in July-Feb FY2022).
• Conducted the 3rd Joint Working Group meeting on Trade & Investment.
United Kingdom:
• Trade balance in favor of Pakistan (US$ 911.13 million in July-Feb FY 2021-22).
• Post-Brexit, UK committed to maintaining similar market access for Pakistani
products.