Cabinet approves Strategic Trade Policy Framework 2020-25

November 10, 2021

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On Tuesday, The federal government passed the Strategic Trade Policy Framework (STPF) 2020-25, which aims to improve the ability of Pakistani companies to manufacture, distribute and sell products and services more or less efficiently than their global competitors.

According to the Ministry of Commerce, priority areas were identified in STPF after examining trends in international demand on the one hand and the opportunities and capabilities of Pakistan’s various export sectors on the other.

The main focus of the frame is as follows; (i) geographic and product diversification; (ii) reduce production costs by rationalizing tariffs; (3) Continue regional ties and the “see Africa” policy; (iv) improved market access through the free trade area / free trade area; (5) Simplify TIR logistics and monitoring and improve regional connections to reach the Central Asian Republics (CARs), Turkey and Iran, as well as Europe and Russia.

The policy focused on the following traditional areas; (i) textiles and clothing; (ii) leather; (3) surgical instruments; (4) Sports goods. (5) carpets. (6) rice and; (vii) Crockery.

The new policy focused on technical products (including car parts), medicines, marble, metals, processed foods and beverages, shoes, precious stones, jewelry, chemicals, meat, poultry, fruits, vegetables and seafood.

In the service sector, special attention is paid to information technology, transport, logistics and tourism.

A multifunctional National Export Development Board (NEDB), chaired by the Prime Minister, has already been established to oversee the implementation of STPF 2020-25, which includes senior public sector officials and private sector representatives from relevant organizations.

Pakistan remained a net importing country with reliance on Imported products. Analyst believe that potential exist for Import Substitution Industries as many products can be manufactured domestically with Government Support.