June 15, 2002	Saturday	Rabi-us-Sani 3, 1423

ISLAMABAD, June 14: Pakistan is facing difficulties in finding out new export markets in Japan, China, Africa and Latin America, says Minister for Commerce Abdul Razak Dawood.

“But we have got 15 per cent increase in the European Union (EU) and this duty-free access is helping us to enhance our exports there,” he further stated.

Talking to reporters at a forum arranged by the Associated Press of Pakistan (APP), he admitted here on Friday that despite certain efforts Pakistan could not get better market access in Japan, China, Africa and Latin America.

He agreed that there was a need to coordinate efforts particularly with Pakistan missions abroad to get Pakistan’s exports increased. He also agreed that inefficient people in foreign missions should be recalled and replaced by competent ones.

Mr. Dawood, who is also the minister for production and industries, said that exports had been hit by September 11 events of last year. He expressed hopes that exports will considerably increase during the next financial year. “We are hoping $9 billion exports by June 30 this year.”

He said that the new trade policy will make sure that various genuine complaints of the exporters were removed. “Our foreign exchange reserves should increase through exports rather than remittances,” he remarked.

To a question he said that some of the export items have fairly done well during the current financial year and were likely to perform further well in 2002-2003.

Giving the details, Dawood said value-added exports have registered an increase of 57 compared to 52 per cent of last year and 37 per cent of 1995. He said in terms of quantity exports were up by 25 per cent.

“But bedwear exports were up by 24 per cent in terms of value addition and it is 6 per cent of the world market which is incredible,” the commerce minister said. The export of towels was up by 18 per cent in terms of quantity and 11 per cent up in terms of value-addition. Readymade garments grew by 21 per cent in terms of quantity and 6 per cent in value-addition. “But Knitwear is down by 10 per cent in quantity and 8 per cent in terms of value addition and that worries me,” he said. Similarly, he said export of cotton yarn was down both in terms of quantity and value-addition.

Foreign Direct Investment (FDI), he pointed out, has declined which needed full attention specially during the next financial year. “Whatever foreign investment has come, it has come in oil and gas sector due to increase in their tariff,” he said adding that there was no investment in large scale manufacturing specially chemical plants.

He said engineering and chemicals were the two main areas which will receive considerable attention in the new budget for increasing their exports. “There will be the restructuring of tariffs in the budget.”

He told a reporter that the exports of auto parts was up by 38 per cent while the exports of fans have achieved an unprecedented increase of 74 per cent.