The government has decided to reprioritize the country's export strategy after evaluation of Covid-19 effects at the global level, especially big markets for Pakistani products. This was stated by Prime Minister's Advisor on Commerce and Investment, Abdul Razak Dawood in an exclusive chat with Business Recorder Tuesday.
"As the situation of Covid-19 improves, I will discuss future strategy with the business community/exporters so that an effective plan is formulated keeping in view conditions of international markets," he added. Pakistan's exports have declined substantially due to global lockdown and closure of domestic industry.
"Exporters have to now think if the previous export strategy will continue or a new strategy is needed for future i.e. new products, new markets and new geography," he maintained.
Dawood argued that both the government and the private sector have to rethink the ways and means to proceed ahead with new ideas. "As the spread of Coronavirus is controlled, I will have a couple of meetings with private sector on video conference," he added.
According to Razak Dawood, he has been informed by some exporters that export orders will restart soon but at a slow pace.
"I am worried if export orders come, then how those orders will be executed during the lock down. Export industry is now open but there are hurdles for the suppliers. I am very optimistic that these hurdles will be overcome soon," he continued.
Answering another question, he said that package for Small and Medium Enterprises (SMEs) is yet to be finalized but consultations with the stakeholders are in progress.
"We are finding out ways to ensure jobs of workers along with the small industry so that both are protected. We have to extend support to both the SMEs and labour but the way has to be determined," he further added. In reply to another question, Dawood said that the State Bank of Pakistan (SBP) scheme for industry is fine but limited.
"In my view the SBP's scheme is only for those industries which do substantial business but their labour content is limited," he observed.
However, in SMEs where business is not as much as in other industries but labour content is higher, such schemes will not work which is why the government is looking to prepare schemes for SMEs and labour.