Exports likely to decline to $23bn

RECORDER REPORT

ISLAMABAD: Pakistan's exports are expected to decline to $23 billion in the current fiscal year from $25 billion of last year, said Tariq Iqbal Puri, Chairman of Trade Development Authority of Pakistan (TDAP).

Talking to media after the meeting of National Assembly Standing Committee on Textile, he said that worst financial crisis in the Europe and USA, coupled with the energy crisis at home would negatively impact the exports of the country. He said that the exporters had not been able to timely meet the orders of the foreign importers due to energy crisis.

The TDAP chairman informed the committee that Pakistan's textiles exports had witnessed a negative growth of 1.39 percent during the first six month of the current fiscal year and were expected to further decline in the remaining six months.

He said that the TDAP had consulted with all stakeholders in the textile industry to analyse how the proposed trade liberalisation with India was going to impact the various textile sectors. He said that those items of textile industry, going to be affected negatively by the trade liberalisation would be placed in the negative list, with a view to protect the sectors. Trade liberaliation between Pakistan and India would increase bilateral trade from $3.5 billion to over $6 billion, he added.

Additional Secretary, Ministry of Commerce said that all exhibitions scheduled for future would be finalised in consultation with and recommendations of the textile ministry for promotion exports.

The TDAP chief said that the outcome of the textile exhibition was very positive on textile exports, which increased them from $10.27 billion in 2009-10 to $ 13.528 in 2010-11, reflecting an increase of 34 percent. The participation in one exhibition in Germany in January 2011 was able to fetch textile order worth $ 129 million.

However, he admitted that share of textile declined from 67 percent to 55 percent in total exports of the country but the share of non-traditional items showed positive growth and helped diversify exports base.