Revising its initial target of $20 billion, the government has fixed $18.6 billion total export target for the year 2006-07, which would mean an increase of about 13% over actual exports registered during the previous year.
Pakistan's total exports during last year were of $16.469 billion, that resulted in 14.4% growth over the year 2004-05, though still not meeting the $17-billion target.
Thus, export target set for the current fiscal year amounts to nominal increase only, even lower than actual growth rate achieved for the previous years. Unfortunately, the signs for possibly achieving this target are not positive, in view of slow pace of export performance for the first quarter of the year.
During the period July-September 2006 total exports have amounted to $4.269 billion, almost at the same level of corresponding period last year, while in the month of September the exports declined by 4.5%.
This is in spite of the oft-trumpeted strategy devised by the government over a period of years aiming to increase exports of traditional as well as non-traditional products, exploring new markets too. Shockingly, the poorest export performance has been shown by the engineering sector, otherwise known globally to be a catalyst for export enhancement.
During July 2006, export of engineering goods was of $9.31 million, compared to receipts of $13.68 million in July 2005 and that of $18.73 million in June 2006. In effect, there was a decline of about 32 percent compared to the same period last year. Details reveal that export of auto parts declined by over 60%, (from $1.886 million in July last year to $1.252 million this month), whereas surgical instruments registered a decrease of more than 78% over corresponding period last year.
Likewise, export of other machinery items amounted to $3.567 million compared to $4.423 million in July 2005 and $9.835 during June 2006. This dismal export performance, in particular that of engineering goods, should invite serious concerns at high government level, on priority, taking corrective measures, in the backdrop of ever-widening trade deficit.
Ironically, there has been repeated commitment of the Chief Executive of the Engineering Development Board to earn one billion dollars from export of engineering products by 2007, compared to 2005-06 exports of $540 million.