Pakistan enters the year 2005 with an over $2.5 billion trade deficit and exports sliding every month since September. Amidst this dismal situation, both the export planners in the government and the actual players - the exporters - appear to be in a state of flux.

An aggressive economic diplomacy has been unleashed during last four years by the government. Involved in this effort are the top man President Pervez Musharaf, Prime Minister Shaukat Aziz, Commerce Minister Humayun Akhtar down to the bureaucrats at the lower rung. All are engaged in seeking more market access.

Foreign missions in 80 countries are said to have been activated to keep export planners at home updated on the market trends in their respective areas. Trade and not aid has become the buzz word.

All this hectic lobbying did bring some dividends. Export earnings surged for the first time to $10 billion coveted figure in 02-03 and exceeded $12 billion in 03-04. Now, the country expects to net in about $14 billion. But export planners appear to have failed to convert post-9/11 gains into sustainable export growth. The European Union imposed a 13 per cent anti- dumping duty on bed linen in March last year. All pleadings and efforts to get a review have so far proved futile.

An audit team from the EU is now expected in Pakistan next month which will examine cost accounting of seven Pakistani companies. Bed-sheets are one of the textile products in which Pakistan is reported to have excelled and won recognition from top store chains in Europe and the USA.

The levy of anti-dumping duty on bed-sheets has proved somewhat costly for Pakistan. Turkey and other East European countries are importing grey cloth from Pakistan to convert it into bed sheets and fill the space created by exit of Pakistan from West European markets.

Pakistan's export planners have also failed to conclude any Free Trade Agreement (FTA) with any of the countries involved in negotiations for the last more than three years.

Former Commerce Minister Razzaq Dawood had started negotiations for FTA. Instead the Trade, Investment and Finance Agreement (TIFA)) was signed with America last year which does not provide much opportunity to exporters.

A Preferential Trade Agreement was signed with China last year and as an after thought, rice, vegetables and fruits are being added to the list of Pakistan's exportable goods. Pakistan is working on FTAa with Sri Lanka and Kenya. But those involved in negotiations have not been able to get the job done.

"We are about to sign an FTA with Sri Lanka'' Humayun Akhtar, the federal Commerce Minister informed Dawn on Thursday evening. He attributed the delay in conclusion of FTA with Sri Lanka to the dispute on the list of products given by the two countries.

Sri Lanka, now struggling to recover from the disaster of Tsunami, is expected to conclude FTA with Pakistan very soon. The EU and USA remained the focus of export planners when during 2004, China signed an agreement with ASEAN member countries.

India has also joined the club and by 2012 there would be a virtual unhindered movement of goods in 17 countries of East and South Asia. With a population of 2.25 billion, the size of the economy of these countries is said to be about three trillion dollars.

"We are trying to enter this club via Malaysia and China'' a senior official of the Commerce Ministry told this correspondent. Pakistan enjoys observer status in the ASEAN.

Top exporters, three in Karachi and one in Lahore, who are engaged with the government quite frequently on trade-related issues and do not want to be quoted for obvious reasons say that time has come to institute a permanent Trade Negotiator's office.

"I am the Trade Negotiator for Pakistan'' Humayun Akhtar quipped when this correspondent asked him why the appointment is being delayed. "We have done enough capacity-building in Commerce ministry and in WTO mission in Geneva'' he said. He recounted his successes in dealing with trade issues with the EU, USA and other countries.

Exporters say that a position in federal cabinet is a political assignment which is vulnerable to change whenever the Prime Minister decides to reshuffle or a new government is inducted.

The Trade Negotiator has to be a permanent office of professionals well versed with the working and rules of about 300 FTAs and Regional Trade Agreements (RTAs) now in operation in all parts of the world. Besides, there are WTO rules and conventions of many international organisations that impact trade.

Trade circles say that the name of Mirza Qamar Baig was proposed for the office of Trade Negotiator before he was posted as Pakistan's ambassador to Italy. But then the issue was whether this office be kept with commerce ministry or directly under the jurisdiction of the Prime Minister's secretariat. No decision could be reached and the matter lingers on.

The exporters in Karachi and Lahore harbour another fear. Almost 55-56 per cent of Pakistan's dependence on EU and USA for exports is attributed to a trade off. Pakistan's role in anti-terrorism war has been compensated by Europeans and Americans by giving access to our goods in their market. But whenever this trade off position cease to exist, the USA and the Western countries will not hesitate to dump Pakistan.

European buyers and to a certain extent US importers are demanding social compliance from their trade partners. They are soft with Pakistan. But for how long? This is a question which is haunting Pakistan's exporters. Asia, the exporters are convinced is a market which is expanding and offers much brighter prospects for a sustainable export growth.