Federal Minister for Commerce Syed Naveed Qamar Tuesday said that the United Kingdom has unveiled a new initiative called the Developing Countries Trading Scheme (DCTS) in an effort to strengthen economic ties with Pakistan.
Qamar praised the DCTS, which aims to provide Pakistan and 64 other countries with improved trade opportunities through tariff reductions and simplified terms of trade.
While announcing the launch of the DCTS, the minister said Pakistan will enjoy one of the most generous sets of trading preferences offered by any nation in the world. The scheme officially replaced the UK’s Generalised Scheme of Preference (GSP) on June 19, 2023.
The current bilateral trade between Pakistan and the UK stands at a substantial $4.4 billion, and with the implementation of the DCTS, both nations anticipate a significant boost in trade volume and economic cooperation, the minister said.
It is projected that Pakistan will save approximately $120 million in export tariffs under the DCTS, which will facilitate greater competitiveness for Pakistani exporters in the UK market. This development is seen as a positive step towards strengthening the economic partnership between the two countries.
The minister said that under the DCTS an impressive 94 percent of goods exported from Pakistan will be eligible for duty-free access to the UK. This measure is expected to encourage the expansion of various sectors within the Pakistani economy, including textiles, agriculture, and manufacturing, the minister remarked.
He acknowledged that Pakistan’s “Enhanced Preferences” status has been retained, providing the country with added advantages in terms of trade incentives and market access. This recognition reinforces the commitment of the UK to foster trade relationships with developing countries like Pakistan.
The commerce minister emphasized that the DCTS signifies the UK’s dedication to creating a more inclusive and mutually beneficial trading environment, which will stimulate economic growth in both nations.
He expressed confidence that the tariff reductions and simplified trade terms introduced by the initiative will encourage increased bilateral trade, leading to enhanced prosperity and development for Pakistan.
With the DCTS coming into effect, Pakistani exporters and business communities are eagerly anticipating the opportunities it will unlock.
This initiative is expected to deepen the historic ties between the UK and Pakistan, and pave the way for a more prosperous future characterized by robust trade relations and shared economic growth, said Qamar.
He commented that as the DCTS comes into effect, the Ministry of Commerce will work closely with relevant stakeholders to ensure that Pakistani exporters are aware of the scheme’s benefits and can capitalize on the new opportunities it presents.
Pakistan, as one of the countries benefiting from the DCTS, is well-positioned to leverage this opportunity for its economic growth. With increased access to the UK market, Pakistani businesses can expand their exports, tap into new consumer bases, and diversify their product offerings. The ministry will provide guidance and support to facilitate the seamless integration of Pakistani businesses into the UK market, further enhancing bilateral trade relations, he added.
