Narrowing trade deficit
RAIS AHMAD KHAN
ARTICLE (May 14 2008): Our trade deficit for the ten months of the current fiscal has crossed $16 billion, and, it is feared, may hit $20 billion by the end of June 2008. The factors causing such undesirable state of affairs are known to all and sundry. What is lacking is a will to rectify the situation speedily.
Industrial production is hampered by the power shortages, and not likely to improve much in the near future because the power generation is not going to be enhanced any time soon. That leaves the agricultural and service sectors to fill the gap.
I. AGRICULTURAL SECTOR: From an export point of view, very little attention has been paid to the potential of Middle East markets for products (other than rice) for prime, semi-processed or fully processed farm products. Just consider a few items as an example:
A) LIVESTOCK:
i) Meat - Live animals; slaughtered and chilled; frozen; cooked and packed.
ii) Dairy products
iii) Hides & skins, leather goods, garments, footwear, sports goods, gloves, etc.
iv) Blood serum, bone meals etc.
v) Organic fertilisers
vi) Wool and woolen textiles etc.
vii) Handicrafts, like camel skin products etc.
viii) Stud farms and pedigree animal breeding (like race horses, camels, cats and dogs, and exotic animals, like deer, stags, ostriches etc).
ix) Fowls, Poultry, eggs etc.
x) Rare birds bred in captivity, like pigeons, partridges, quails, bustards, chikor, pheasants, peacocks, parrots and the like;
xi) Fodder and animal feed etc.
xii) Fish and sea food.
B) FRUITS AND VEGETABLES:
i) Fresh, frozen, dried, canned and processed
ii) Ready to use (washed, cut and chilled or frozen in small consumer packs) vegetables air-flown to super markets daily
iii) Cut and dried vegetables for off-season use (in consumer packs)
C) PLANTS AND CUT FLOWERS:
1) Ornamental and exotic tropical plants and flowers
2) Cut flowers and bouquets
3) Potted plants
4) Wrappings, packing materials, ribbons, strings, foliage, etc. These are just a few examples for potential markets.
FOLLOWING POINTS MUST BE NOTED:
1. Health, Quarantine and Phyto-Sanitary Certificates, conforming to International Standards are a MUST. Proper facilities, cold storage, warehouses and quarantine premises must be arranged at all key places and exit points as soon as possible.
2. Beef, Mutton (sheep) Veal (Lambs) and Venison are a huge import item in Iran and the Gulf countries. Cumulative estimates speak of an annual $10 billion market for meat products, and many times more for live sheep (around Hajj time mainly).
3. Goat meat is not favoured in Iran.
4. Cheese is a favourite food item in the Gulf region, but production in Pakistan and its marketing needs special attention.
5. Cut flowers have a worldwide demand if properly handled.
6. Potential exports from Pakistan, if properly organised, could yield between $8 and 10 billion annually, on above items alone, as our share of the bonanza.
II SERVICE SECTOR: With the wealth of computer science talent at our disposal, the existing opportunities for "out-sourcing" have not been fully exploited. With proper efforts, there is no reason why Pakistan should lag behind India, for instance, in this field. Goals must be set to achieve an annual target of $50 billion, in as short a time as possible. Besides earning foreign exchange, the vistas for gainful employment of talented youth are limitless.
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