Branding Pakistan internationally campaign being designed to promote exports

ISLAMABAD (INP): The government would initiate Branding Pakistan internationally with a well-designed campaign to promote exports as well as enhancing competitiveness of country’s products in international market.

Ministry of Commerce is working on developing a three-stage communication and image building strategy which will work on Branding Pakistan (Image building), made in Pakistan (trade) and Make in Pakistan (Investment).

Official sources on Sunday said Pakistan’s exports have witnessed an increasing trend and reached US $ 9.03 billion in first five months (July to November 2017-18), registering 10.50 per cent growth as compared to corresponding period last year.

The exports during corresponding period of last year (July to November 2016-17) were US $ 8.17 billion, the sources said while quoting figures of Pakistan Bureau of Statistics (PBS).

Giving further details, the sources said cost of production depends on national and international variables.

Pakistan exports were facing many challenges like low market diversification and lack of introduction of modern technology by business community which certainly affect cost of production.

The sources said the Ministry is well aware of the fact and keeps on taking various measures that are aimed at reducing cost of production as well as enhancing competitiveness of Pakistani products in international market.

The Ministry has recently undertaken an exercise in consultation with stakeholders to review the Regulatory Duties (RDs) imposed on various items and proposed to remove/reduce RDs on basic raw materials and intermediate goods for downstream industry which would reduce production cost and enhance Pakistan’s integration in the Regional and Global Value Chains.

Listing the other steps, the sources said in order to enhance export competitiveness, the government had announced an Export Enhancement Package of Rs. 180 billion for exporting business community, which is applicable for about 18 months from January 16, 2017 to June 30, 2018. This incentive was revised further vide Economic Coordination Committee (ECC) of Cabinet decision on October 6, 2017.

The salient features included 50 per cent of rate of incentive for eligible textile and non-textile sectors already announced in PM package shall be provided on same terms as for period January to June, 2017 i.e. without condition of increment while remaining 50 per cent of rate of incentive shall be provided, if the exporter achieves an increase of 10 per cent or more in exports as compared to corresponding period of the last year.

The sources said an additional 2 per cent drawback shall be provided for exports to non-traditional markets i.e. Africa, Latin America, non-European countries, Commonwealth of Independent States and Oceania as same condition as in sub-para (a) and (b).

Moreover, the sources said under Strategic Trade Policy Framework 2015-18, the government has announced following for promoting exports of SME Sector: The initiatives inter-alia included: an incentive for technology up-gradation in shape of investment support of 20 per cent and mark-up support of 50 per cent upto a maximum of Rs. 1 (one) million per annum per company for import of new plant and machinery.

Matching grant upto a maximum of Rs. 5 (five) million for specified plant and machinery or specified items to improve product design and encourage innovation in Small and Medium Enterprises (SMEs) and export sectors of leather, pharmaceutical and fisheries.

Matching grant to facilitate branding and certification for faster growth of SME and export sector in Pakistan’s economy through Intellectual Property Registration (including trade and service marks), Certification and Accreditation.

Draw-back for local taxes and levies (DLTL) is being given to exporters on Free on Board (FOB) values of their enhanced exports if increased by 10 per cent and beyond (over last year’s exports) at rate of 4 per cent on increased exports. The sources said the government is providing export-oriented industries with a concession of Rs 3 per unit in electricity tariff since 2016, to promote exports of value added sectors, sales tax zero-rating regime for five export oriented sectors, i.e. textile, leather, carpets, surgical and sports goods has been introduced with effect from July 1, 2016.