December 19, 2002	Thursday	Shawwal 14, 1423

KARACHI, Dec 18: A jump of about 16 per cent in export earnings in last five months has given tremendous hope and optimism to the export planners and exporters who now expect to far exceed $10.4 billion target fixed for the current fiscal year and go beyond $11 billion by June next.

“Yes, we are reviewing our export performance in last five months and are in process of drawing up a new strategy to consolidate on our gains,” a happy Chairman of Export Promotion Bureau Tariq Ikram told this correspondent by telephone on Monday.

The EPB Chairman was confident of surpassing $10.4 billion export target by June next but he was cautious and reluctant in indicating whether the export earnings will touch $11 billion during the current fiscal year.

A double digit billion dollar export earnings in any single year has remained a dream for all the governments in last ten years. Malik Naeem, the Commerce Minister in Nawaz Sharif’s first government wanted to achieve this target by 1993. But for last five years Pakistan’s exports stagnated around 8 to 9 billion dollars.

Exporters are now confident of touching 11 billion dollars export by June next. But all of them attach a big if to this prospect. There is a lurking fear that Iraq-US standoff may flare up and put the whole Gulf region and world economy into turmoil. There are apprehensions about the domestic political stability. Any disturbance could derail the economy and exports could be severely affected.

Tariq Ikram disclosed that the bureau is preparing a long term export development plan for the US and China. With the US, the plan will take care of the textile export quota items particularly those in which desired level headway is not being made. Non-quota items are also being identified and efforts will be made to market this items in the US market on sustainable basis.

Pakistan’s textile export quota trade with the US exceeds 2 billion dollars and exporters hope to take this figure up to 3.5 to 4 billion dollars a year if coordinated efforts are made by the government as well as exporters.

“I have held meetings with exporters to discuss potential of each and every item for marketing in the US,” Tariq Ikram said. He disclosed a draft of the proposed export development plan has been prepared which would be given final touches. He also discussed export prospects in the US with Pakistan embassy officials and Pakistani businessmen in New York, Washington and other cities of the US about two months ago.

Pakistan and China are having an inter-ministerial commission and joint business council meeting in next few months. The EPB has held preparatory meetings with the local exporters. An initial exercise has been carried out to find marketing potential of a number of items and present share of Pakistan.

Initial exercise shows that Pakistan’s share in almost every item is insignificant and there is immense potential of increase.

The EPB Chairman hopes to finalise export development plan for China in next few weeks. The bureau has broadly divided all export items into core and development categories. In last five months 12 core items export that include cotton yarn, cotton cloth, readymade garments, bedwear, raw cotton, towels, knitwear, art silk and synthetic textile, tents and canvass, leather footwear, sport goods and meat has shown considerable improvement.

Readymade garments export is up by more than 26pc, cotton cloth by about 29pc, leather footwear by about 24 per cent.

All 12 items of developmental category are also showing significant rise. Cement export is up by more than 200 per cent, gems and jewellery by 23 per cent, chemicals by 73 per cent.

While planners are putting an export strategy in place, exporters want government to improve sales tax refund process, review utilities tariff and take steps that should bring down production cost.