KARACHI – Though there has been a consistent decline in Pakistani exports to the United States of America (USA) in the last three years, export value during six months of current financial has appreciated by 18 percent to what the sources attribute to an increase in cotton prices.
Furthermore, according to export receipts at State Bank of Pakistan (SBP) the export value to top 10 countries in the Americas have risen to $2.40 billion during July to December 2010 against the $2.0 billion during the corresponding period in the last financial year.
The export value of products send to the US grew from $ 1.744 billion to $2.0 billion in the course of half a year appreciating by 15 percent while export to other states including Canada, Mexico, Chile, Brazil, Argentina, Nicaragua, Guatemala, Peru and Venezuela also expanded by 23.22 percent, 25.67 percent, 50.7 percent, 111.1 percent, 69.3 percent, 78.65 percent, 6.34 percent, 48 percent and 8.7 percent, respectively.
As major export items to these countries are textile products including cotton towels processed in mills, garments, bed sheets, shirts and other cotton fabrics. A major factor in the increased value of national exports is the worldwide escalation of cotton prices, sources added. In addition to textile products, some countries such as Brazil and Mexico were also importing footballs and surgical items from Pakistan, while Basmati rice was being imported by Canada.
In return, Pakistan is importing American ships fertiliser, aircraft, used automobiles and defence products. According to international trade statistics, sources said Pakistan continued to ramp up its cotton-based exports to American consumers at a faster pace than overall US exports to Pakistan.
However, the United States grew sales of its top exported products to Pakistan at much higher percentages than the leading US imports from Pakistan. Cotton t-shirts for Men were the fastest growing product segment being imported from Pakistan into the United States, followed by Pakistani manufactured cotton towels.
Sources reiterated that the hike in exports to the US was mainly due to the jump in cotton prices while export in terms of quantity did not rise in recent years.
Furthermore, Islamabad, despite being declared a frontline state in support of the war against terrorism, has not succeeded to gain further penetration in the US market.
Trade volume with US has consistently fallen since Financial Year (FY) 2008. Trade, both in terms of exports and imports, with US in FY 2008 was to the tune of $5.243 billion which fell to $4.7 billion in FY09 and $4.493 billion in FY10.
