In the backdrop of constant decline in exports, All Pakistan Business Forum (APBF) has asked the government to take business community on board in preparing policies to enhance exports so that fast widening trade deficit could be checked. APBF President Ibrahim Qureshi in a statement on Monday said the country's exports declined by 13.26 percent during the first eight months of the current fiscal year, losing around US 2 billion dollars. The exports declined by 4.73 percent in February 2016 to US 1.791 billion dollars.
He said that trade deficit was surged by 10.68 percent to US 22.09 billion dollar in 2014-15 from US 19.963 billion dollar in the preceding fiscal year- the record highest trade imbalance in last over 35 years. The announcement of trade policy was due in July 2015, but later got postponed for some unknown reasons.
The business community is still waiting for announcement. The expected policies could revive both domestic and foreign trade and may boost exports, he said. Free Trade Agreements signed with some of the countries appear to have been playing a major role for imbalances, he added. He further said that Pakistan's exports have been stagnant at US 24 billion dollars for the last many years.
Quoting the figures, he said that during last 30-year period (1980-2011), India's share of world exports improved from 0.43 percent to 1.7 percent, Bangladesh's from 0.04 percent to 0.14 percent, Malaysia's from 0.74 percent to 1.34 percent and Thailand's from 0.37 percent to 1.35 percent. But it is unfortunate that Pakistan's share remains stagnant at 0.15 percent, he maintained. Qureshi said that during the fiscal year, imports from China increased sharply from 17 percent to 23 percent a year ago. The record US 22 billion dollars trade gap is happening despite the fact that Pakistan is enjoying preferential access to the EU market under GSP Plus and interest rate is also lower at home while oil prices are constantly declining.
Pakistan's exports base and markets are extremely narrow. More than 55 percent of its exports earnings are contributed by the cotton group while leather, synthetic made-ups and rice contribute around 14 percent of total exports. Unfortunately, these items are relatively low value-added products. The international image building is the need of the hour, besides formation of new trade specific export promotion agencies having independent budgets and policies, he said.
He said that though energy shortage and law and order kept the economy hostage during the last many years, yet the government should have a clear vision on the economic issues, to help resolve the problems of export oriented industry at the earliest. APBF president urged the government that all stakeholders should be taken on board while preparing industry related policies, and asserted that industrial estates should be exempted from load shedding of gas and electricity to meet the local market and export targets. The government should also facilitate the exporters and implement all trade facilitations in letter and spirit enshrined in trade policies, he said.
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