India is asking Pakistan to grant it the coveted status of the most favoured nation (MFN), but Pakistan is pressing upon Delhi to remove non-tariff barriers for the existence of a liberal trade regime. Pakistan is focusing on enhancement of trade relations with regional partners, especially China. The country’s trade deficit would remain around $12 billion by the end of the current fiscal year.
These remarks were made by the Trade Development Authority of Pakistan (TDAP) Chief Executive Tariq Iqbal Puri, while he addressed a news conference. He underlined that over a period of time it had been realised that it was essential for Pakistan to focus on regional trade. Both India and Pakistan had to open their markets for mutual benefits if trade talks between the two remained positive, Puri maintained.
He stated that the country’s export would touch a record $25 billion by end of the current fiscal year, despite the severe energy crisis and other impediments. He disclosed that TDAP was hosting a mega event in July to encourage exporters. A major chunk of around 70 per cent in the increase of exports was a result of better commodity prices in international markets, but a quantitative rise was also witnessed in the exports of non-traditional items, he observed.
Citing examples of such items, he pointed out that a quantitative increase of about 30 per cent was witnessed for wheat, 81 per cent for pulses, 66 per cent for meat and meat preparations, 40 per cent for tobacco, 38 per cent for synthetic textiles, 31 per cent for knitwear, 25 per cent for electric fans, 24 per cent for vegetables, 23 per cent for fish, 22 per cent for plastic material and a 20 per cent increase was seen in the quantity of leather goods during July-April 2010-11, as compared to the corresponding period of the previous year. He said that the government had declared 2011 as the ‘Year of Exports’ and the ‘Year of China and Pakistan Friendship.” In order to meet the desired objectives, TDAP had planned to enhance its export promotion activities around the globe with a special highlight on China and Japan, a further extension of its regional focus. He said that China was proving to be a huge emerging consumer market and to tap this potential TDAP has planned participation in 20 exhibitions and 14 business forums in China to be held in 2011-12 in its attempt to obtain better market access to China. Puri said that in view the current year’s record breaking performance, the export target has been revised from $20 billion to $24 billion. He indicated that in May 2011 alone, the country saw exports worth $2.308 billion, which represented a sharp rise of 33 per cent in comparison with to numbers of the same time last year, when exports amounted to $1.736 billion. He estimated that the country’s exports would touch $30 billion during the next five years, if the energy crisis was resolved. He also pointed out that TDAP had shifted its focus towards stakeholders and that a massive consultation process was underway. Stakeholders from almost all export sectors are on board with TDAP, working together to enhance country’s exports, he noted.
