For international trade, there were two areas specifically addressed during the recent US president's visit, firstly, financial assistance in developing an institute for entrepreneur training and secondly, reconstruction opportunities zone in rural areas, products from these zone will have duty-free access to US market.
It was stated by Ms Iffat Ara, Senior Economist, Social Policy and Development Center (SPDC), during an interview with AAJ markets.
"Their focus is on poverty alleviation as tone of both the addressed areas focus on rural area development," she said, adding, "Pakistan will have to diversify its product range as about 85pc of our total export to the United States is textile and textile made ups and after the elimination of quota system all countries will have free access to US textile markets."
In addition, Pakistan will have to improve its competitiveness by looking into input prices, which are rising more rapidly than output as compared to its competitors.
She said: "As per facts and figures, Pakistan's trade is most restricted in the world, Pakistan export market access is limited and recent developments will help in improving Pakistan exports share to US markets though it is subject to the magnitude of this free access and sustainability."
During financial year 2004-5 Pakistan's exports to the United States were $3.50 billion-24pc of Pakistan's total exports-whereas Pakistan imported $1.50 billion worth of goods from US, 7.6pc of total imports, registering trade surplus of around $1.80 billion. "For the last 10 years Pakistan runs trade surplus with US 85pc of our total exports are textile and textile made ups, whereas our imports range from nuclear reactors, electronics and fertilisers," she added.
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