Pakistan's exports to China and United Arab Emirates (UAE) have taken a downward trend, declining by 13.71 per cent and 24.5 per cent respectively in the financial year-2015-16. According to sources, China has done away with its policy to store raw cotton and yarn that comprises major portion of Pakistan export basket. The policy shift of the Chinese has also affected international price of yarn.
Pakistan's exports to UAE have declined due to decrease in the exports of petroleum products, chemicals, jewellery and rice. On the other hand, since Generalised Scheme of Preferences (GSP)-plus Pakistani products have duty free access in 28 member states of European Union (EU) since 1st January, 2014, exports to EU grew by 22 per cent in 2014. In 2015 also, Pakistani export to EU grew by 11 per cent in Euro terms. However, exports to Britain after Brexit may dampen exports.
It has been noticed that Pakistan's export market lacked diversification and was concentrated only in a few regions and countries with 51 per cent of exports confined to six countries/ regions like EU, US, UK, China, Afghanistan and Middle East. Pakistan has not been able to tap its export potential in the regional market and was facing tariff and non-tariff barriers in markets like Iran and India, they said.
Investment in exporting sectors has remained disturbingly low, as a cut-throat competition with emerging players like Bangladesh and Vietnam have made margins in the exporting business fairly unattractive. Sources said that rice being the second largest export item of Pakistan was given priority in the Strategic Trade Policy Framework 2015-18. To promote and develop rice exports, a Rice Development Council is being established. Basmati rice has been selected as one of the focus products for short term turn around in exports.
Significantly the Ministry of Commerce had recently signed Memorandum of Understanding with Indonesia for export of one million tons of rice over the next four years. Trade Development Authority of Pakistan (TDAP) organises participation of Pakistani rice exporters in all the leading international food fairs and organises trade delegations to the export markets.
