To help Pakistan in trade, the Asian Development Bank (ADB) approved a loan of $300 million.
While COVID-19 hit Pakistan at a critical point in its macroeconomic recovery, the government’s ongoing efforts to ensure stability have started showing encouraging results this fiscal year,
ADB’s program will support these efforts and help Pakistan to improve its export competitiveness—now more important than ever given the impacts of the pandemic.Principal Public Management Specialist, Hiranya Mukhopadhyay
This project is intended to revive the account deficit and improve exports. The statement from Hiranya Mukhopadhyay further read:
It will introduce important tariff- and tax-related policy reforms to help improve Pakistan’s international competitiveness and further strengthen key institutions, including accreditation bodies, the Export-Import Bank of Pakistan, and the Pakistan Single Window,
The new financing falls under subprogram 2 of the Trade and Competitiveness Program. Under the first phase, ADB helped the government usher in key reforms, including reducing or abolishing tariffs and ad hoc duties on a large number of raw materials and intermediate goods.
Several steps were also taken to introduce e-commerce, strengthen key institutions involved in facilitating trade, and enhance the export certification process,
Since 2004, Pakistan has been witnessing a rise-and-fall pattern in its export growth. This depicts an underperformance in the export and a long-term decline in export competitiveness.