August 19, 2024 (MLN): The ongoing issue of slow internet and growing public concern have caught the attention of Minister of Commerce Jam Kamal also, who has warned that the current firewall system and sluggish internet speeds are hampering the growth of Pakistan’s IT sector exports.

During a briefing to the National Assembly Standing Committee on Commerce, chaired by Jawad Hanif Khan, the federal minister stressed that the issue of declining IT exports will be brought up in the federal cabinet.

Kamal also shared that the export target will be raised to $60 billion by the fiscal year 2029. This ambitious goal is expected to be achieved through measures such as reducing production costs, lowering policy rates, and cutting tariffs.

Additionally, investment from Gulf countries and other regions will be sought to boost exports.

The minister highlighted plans to leverage China’s industry relocation, along with investments from Russia and Gulf nations. Efforts to enhance exports will focus on trade promotion and maximizing the effectiveness of trade officers.

Increasing exports to $60 billion is a key element of the Prime Minister’s economic plan, which includes the introduction of four tiers for export growth, Kamal explained.

He also pointed out that while neighbouring countries offer loans at policy rates of 7% to 8%, Pakistan aims to provide long-term lease options for land in export processing zones.

Furthermore, Kamal noted that 600 tariff lines were subjected to additional customs duties in the last budget, which are currently under review.

However, he cautioned that due to the ongoing IMF program, certain concessions may not be feasible.

The standing committee has requested a report on the tariff policy board's recommendations and strategies for boosting exports.

The committee chairman underscored the urgency of enhancing export growth, given that 48% of the country’s revenue currently depends on imports.

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Posted on: 2024-08-19T21:25:56+05:00