Pak fails to boost exports



Tuesday, April 15, 2008
By Israr Khan

ISLAMABAD: Although Pakistan was signing Free Trade Agreements (FTAs) with various countries of the world for boosting its exports, unfortunately, it has failed to achieve the desired results, said Muhammad Ijaz Abbasi, President of Islamabad Chamber of Commerce & Industry (ICCI).

He was speaking at a seminar titled “Exploring Pakistan’s Export Potential in China and Malaysia in the context of the Free Trade Agreements” here on Monday. After signing the FTAs, Pakistan’s imports have increased immensely, while exports have not increased to the desirable level. He added that the current total volume of trade between China and Pakistan has crossed $6 billion, but the balance of trade is heavily tilted in favour of China.

He said Pakistan’s trade gap is increasing gradually, which is a matter of concern. He stressed that Pakistan should devise a comprehensive strategy to bridge the gap between the imports and exports, for bridging the trade deficit.

The seminar was held here in ICCI, in collaboration with the World Trade Organization (WTO) Cell, Trade Development Authority of Pakistan (TDAP) and Foreign Trade Institute of Pakistan (FTIP).

After 60 years of independence of Pakistan, total exports are hovering around $18 billion, which does not reflect Pakistan’s existing potential. He emphasised that before signing the FTAs, stakeholders should be consulted, for productive results of the agreements.

Abbasi said that the business community was not consulted well before the time of signing the agreements; consequently, desired results were not achieved. Pakistan is already under great economic pressure and increased imports in many sectors may badly harm the local industry. He emphasised that attention should also be given towards the development of the infrastructure for the growth of industries and the acceleration of exports and road network from the farm to the market, should also be improved for the speedy transportation of goods.

At this occasion, Majeeb Ahmed Khan, Head WTO, Cell Trade Development Authority of Pakistan said that China is the fourth largest economy with its GDP being US$2644.6 billion and the third largest exporter in the world. Identifying a potential of $5 billion available in China, he said that exporters should pinpoint those issues, the resolution of which could help increase Pakistan’s exports to China. He said that there exists a huge potential to increase Pakistan’s exports and stressed for the involvement of regional chambers for collaboration with the TDAP, WTO for better results.

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