Pakistan's exports have decreased from $24.58 billion in 2012-13 to $20.8 billion in 2015-16 due to low investment in export sector, lack of value addition, narrow export basket, economic slowdown and other factors. Minister for Commerce Khurram Dastgir Khan informed the National Assembly on Monday during the question hour in a written response to a question asked by Dr Arif Alvi. The exports were $24.58 billion in 2012-13, $25.11 billion in 2013-14, $23.67 billion in 2014-15 and $20.8 billion in 2015-16, he said.
About the demand for raw cotton, he said that additional pressure on imports came from a fall in domestic cotton crop, which necessitated higher imports from India. Investment in exporting sectors has remained disturbingly low, as a cutthroat competition with emerging players like Bangladesh and Vietnam, has made margins in the exporting business fairly unattractive, he said.
Pakistan's export market lacks diversification as more than 50 percent of exports rely on only six markets (USA, China, Afghanistan, UAE, UK and Germany), he said. The minister said that in the international market, many exporting nations have nearly engaged in a "currency war" by letting their exchange rate weaken in order to undercut their competitors and steal market share. Since November 2013, many currencies have significantly depreciated - Indian Rupee 7 percent, Chinese Yuan 8 percent, South Korean Won 10 percent, Thai Baht 11 percent, Sri Lankan Rupee 12 percent, Euro 20 percent and Brazilian Real 51 percent.
In contrast, Pakistani Rupee has appreciated by 3 percent during the same period which has made Pakistani exports less competitive, he said. To another question, he said that though the export of the agricultural commodities declined by 13.7 percent during the year 2015-16 as compared to 2014-15, the total proceeds from the agricultural commodities remained above US $4 billion. The main reason for decline in exports of commodities is the global commodity crisis. The price of cotton in the global market declined by 10% from 70 cents/lb in 2014-15 to 63.5 cents/lb in 2015-16, he said, adding that similarly there has been a significant decline in international prices of other agricultural commodities such as rice and wheat.
The minister also informed the house that the revenue generated from exports of seafood products during the financial year 2015-16 is US $324 million. Ministry of Commerce has announced the three year policy framework (2015-18) in which the target has been set at US $35 billion by the end of 30th June, 2018, he said. The minister informed the house that textile exports have decreased by 7.42 percent during July-June 2015-16 compared to corresponding period of last year ie July-June 2014-15, however, it is pertinent to mention that quantities of value added products have increased and the only major decrease is in the cotton and yarn.
Foreign Affairs Advisor Sartaj Aziz informed the house that Prime Minister Nawaz Sharif and the Foreign Office have written letters to the United Nations regarding the resolution of Kashmir issue according to the aspirations of Kashmiris in line with the UN Security Council resolutions. He said parliamentarians are being sent to the world countries to highlight the Kashmir issue and to draw the world attention about the Indian atrocities in Held Kashmir.
To a question, the advisor said that Pakistan has friendly relations with Iran and after the lifting of sanctions against Iran the relations have improved considerably. Sartaj Aziz said 40 to 50 thousand people cross Pak-Afghan border daily, from one side to the other. He said Pakistan is implementing border management measures including setting up gates and installations of wires at the border crossing points. He said the process of installation of wires and setting up of gates will be completed in an amicable way. To another question, the advisor said that there are 1,448 Pakistani prisoners in the jails of Saudi Arabia. He said the Pakistani mission at Saudi Arabia has taken a number of steps for the help of the prisoners.
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