Pakistan recorded a downfall of $3.7 billion in exports from June 30, 2013 to June 30, 2016 while the total volume of the country's exports has declined from $24.5 billion in fiscal year 2013 to $20.8 billion in fiscal year 2016. Minister for Commerce Khurram Dastgir Khan informed this to the National Assembly on Wednesday during the question-hour.
The trade statistics for July-October 2016-17 show the exports at $6.432 billion and the imports at $15.738 billion, with a trade deficit of $9.306 billion, he said. The minister said the exports registered an increase of 1.56 per cent in October 2016 as compared to 2015 on year-on-year basis. He said the government has been struggling to increase the exports and regularising the trade with other countries to benefit both the farmers and the government.
Besides other incentives and benefits offered by the government, an additional Rs 6 billion is available this fiscal year to exporters through Textile Policy 2014, he said, adding the government has adopted a policy of zero load shedding on industrial feeders since October 2015 and zero gas load shedding for industry since March 2016. The minister said that in order to fulfil longstanding demand for reducing cost of doing business the government has taken a major step of reducing electricity tariff by Rs 3 for industrial units with effect from January 1, 2016.
The availability of affordable finance for the export sector has considerably improved, he said, adding the State Bank of Pakistan has further reduced the discount rate which currently stands at 5.75 per cent and the export finance rate currently at 4.5 per cent is the lowest in a decade. To another question, the minister said that as a result of GSP-Plus, exports of Pakistan to European Union have increased from $6.21 billion in 2013 to $7.54 billion in 2014.
"This was an increase of $1.32 billion which represented an increase of 21 per cent," he said, adding that many sectors including textile which were facing custom tariffs ranging between 6.4 per cent to 12 per cent, leather up to 6 per cent, footwear up to 6 per cent have now duty-free access in the EU.
"This unilateral market access initiative has helped Pakistani products become more competitive vis-à-vis other competitors since we are getting zero tariff on our exports under the GSP-Plus," he said. Dastgir said the total value of textile products exported to EU member countries from Pakistan stood at $5126.87 million and $5226.46 million for the financial year 2014-15 and 2015-16 respectively.
The United Kingdom and Germany are the first and second largest export destinations for Pakistani textile products, he said, adding the total value of textile products imported from the EU member states stood at $2561.7 million and $3146.7 million for financial year 2014-15 and 2015-16 respectively.
The minister also informed the house that all commercial attachés deputed in different countries were selected on merit for the first time and hopefully they would give better export results. Adviser for Prime Minister on Foreign Affairs Sartaj Aziz informed the Lower House that his participation in the Heart of Asia Conference in India was hailed by all the members and he raised Pakistan's viewpoint on peace and stability in Afghanistan effectively.
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