Pakistan Raises 2007/2008 Export Target To $19.2B
Wed, Jul 18 2007, 17:02 GMT
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UPDATE: Pakistan Raises 2007/2008 Export Target To $19.2B
(This updates a story published at 1433 GMT, with quotes and additional information.)
KARACHI (Dow Jones)--The Pakistani government raised its export target to $19.2 billion for the current fiscal year, which began July 1, in an effort to explore new markets and bilateral trade agreements with new partner countries, it said Wednesday.
A government statement said the federal cabinet in a meeting discussed the 2007-2008 trade policy and raised its export target to $19.2 billion from $18.7 billion in the previous fiscal year beginning July 1, 2006.
Commerce Minister Humayun Akhtar Khan unveiled the country's trade policy on state television and said exports in the previous fiscal year which ran from July 1, 2006 to June 30, totaled $17.01 billion, below the $17.87 billion government export target.
"The export growth momentum has decelerated 3.6% in 2006/2007 from 14.4% in 2005/2006," Khan said. "To regain the export growth momentum, we need to address a host of challenges and to put in place proactive policy measures," he said.
Khan predicted imports to touch $32.6 billion in the current fiscal year 2007/2008, up from $30.54 billion in 2006/2007.
The government predicts a trade deficit of $13.4 billion in 2007/2008, slightly down from $13.49 billion in 2006/2007.
Pakistan's exports rose to $15.48 billion in the first eleven months of the previous fiscal year, running from July 1, 2006 to June. Imports amounted to $27.74 billion in the same period.
Exports and imports in the corresponding period of the previous, 2005/2006, fiscal year amounted to $14.94 billion and $25.59 billion respectively.
The textiles sector, which accounts for about 64% of the country's total exports and 50% of total manufacturing orders, underperformed due to tough competition from regional players.
Khan said tough international competition from textiles products coming from China, India, Vietnam and Bangladesh to the U.S. and Western European markets and the setting up of a U.S. sponsored Qualified Industrial Zones in Jordan and Egypt, which allow duty free access to their products, adversely affected Pakistani exports last year.
"But, the most grave area of concern is that the large international importers and chains are reluctant to visit Pakistan citing security concerns," Khan added.
"This has led to a diversion in trade to Bangladesh, China and Vietnam from Pakistan, which are our product competitors in textiles," Khan said.
Khan said the government was carrying out intense trade diplomacy to improve market access for domestic exporters.
He said the government has initiated talks with several other countries in order to set up preferential market access arrangements. Bilateral negotiations in this regard are currently underway with Indonesia, Singapore, Mauritius, Russia, Argentina, Brazil, Venezuela, Paraguay and Uruguay.
The Pakistani government is encouraging trade diplomacy to ensure free market access for Pakistani products in international markets, Prime Minister Shaukat Aziz said in the statement.
"The government is pursuing Free Trade Agreements with a number of countries, as these would open avenues for our exports, which should motivate the private sector to take advantage of these opportunities," Aziz said in the statement.
Khan said the government was trying to diversify the country's export portfolio.
"At present textiles account for more than 60% of total Pakistani exports so it has been decided that international consultants will be engaged in identifying industrial, agricultural and service sectors where Pakistan may already have, or create, some competitive advantage internationally," Khan added.
The government will prepare short-, medium- and long-term plans for such sectors so that in future policy-making the entire focus will be on such identified sectors, Khan said.
Talking about measures to boost exports, Khan said the government has decided to set up an equity fund through pooling resources from private- and public sector organizations in order to acquire international brands.
"To encourage investment and facilitate exports, it has also been decided that we will introduce a scheme of Export Oriented Units, which will essentially have the same incentives as are available to units in the EPZs (special export zones," Khan said.
-By Aamir Ashraf, Dow Jones Newswire; +92 300 216 5595 aamir.ashraf@dowjones.com
(END) Dow Jones Newswires
July 18, 2007 13:02 ET (17:02 GMT)
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