Trade and Competitiveness Program

Start & End Date: 2020-2021

Country/Countries: Pakistan

Multilateral Institution(s) Involved: Asian Development Bank

Since the fiscal year 2004, Pakistan has registered a rise-and-fall pattern of export growth reflecting underperformance in its export industry and long-term decline in export competitiveness. This is compounded by lost export growth momentum from COVID-19, which has reduced high-income countries’ demand for manufacturing goods and disrupted the supply of raw materials.

ADB’s program will help Pakistan recover its current account deficit in a sustained manner and continue to facilitate export diversification. The program will (i) introduce important tariff and tax-related policy reforms to support Pakistan's export industry and improve its competitiveness internationally; and (ii) strengthen key institutions involved in facilitating trade, including accreditation bodies, the Export Import Bank of Pakistan (EXIMBP), and the Pakistan Single Window (PSW).

Overall the program was rated as successful. Exports increased by 13.8% in FY2021 and the economy grew by 5.6% in FY2021.