Export target unlikely to be met this fiscal

Pakistan is unlikely to meet its projected export target as the Trade Development Authority of Pakistan (TDAP) has assessed a decline of 6 per cent in exports that are estimated to remain below $24 billion during the current fiscal year as compared to $25 billion export proceeds last fiscal year. Talking to reporters after the National Assembly standing committee on textiles, Chairman Trade Development Authority of Pakistan (TDAP) Tariq Iqbal Puri, said that worst financial crisis in the European Union and economic slowdown in United States will have negative impact on the country’s exports. He said the energy crisis was also resulting in low productivity that were having a negative impact on exports. Saying that India and China were also faced with 30 to 40 per cent decline in their exports, the estimated 6 per cent decline in Pakistan’s exports was not bad, he said adding that the share of textile decreased from 67 per cent to 55 per cent in total exports. He said the export of non-traditional items has helped Pakistan to diversify its exports base. Earlier the committee was informed that TDAP has engaged all stakeholders of textile industry to finalise analysis to prepare a list of textile items that would be positively or negatively impacted under the proposed trade liberalisation with India. Chairman TDAP said all those textile items which could be affected by trade liberalization would be placed in the negative list for the protection of the sectors which would be unable to compete with Indian competitors. He was of the view that trade liberalisation with India would help enhance bilateral trade volume from existing $3.5 billion to over $6 billion. Cotton, yarn and fabrics exports from India is duty free and upon liberalization of bilateral trade Pakistani industry is set to make it market in value added products in India. The committee was informed WTO Committee on Trade in Goods (CTG) is expected to meet in February to examine Pakistan’s EU package. At present import tariff in EU on Pakistani exports is 9.6 percent due to general GSP against the normal 12.5 percent import duty. In case EU concessional package gets approval from WTO, Pakistan will get an edge in the market where it is already holding a good share in EU market.