ISLAMABAD, April 1: Pakistan is fast loosing its share in the world’s agricultural exports because of not meeting quality standards determined by the World Trade Organization (WTO), it is learnt. nformed sources told Dawn here on Friday that the Asian Development Bank (ADB) has been approached by the government to offer additional Rs1.8 billion to help increase the country’s agricultural related exports by also providing necessary technical assistance.
Pakistan government will provide its share worth Rs1.3 billion to undertake a new programme with the help of the ADB to increase the country’s agricultural exports. hile many developing countries have seen a fairly rapid expansion in agricultural exports over the past decade, with China, Thailand and India amongst regional performers, Pakistan’s share in total world exports has actually declined.
By contrast, India’s total exports rose more than three-fold to over $70 billion between 1990 and 2002, with its share of world trade increasing from 0.5 per cent to 1 per cent.
Pakistan’s agricultural exports, mainly fruits and vegetables have remained heavily concentrated in low value added goods, while other regional producers especially India and Sri Lanka have improved product technology and value addition. Even in low technology segment such as fresh fruits, Pakistan’s exports have declined or stagnated in recent years.
The stagnation in the export market is largely because of the demand in the world markets for a better quality product and improved traceability, related to the WTO regulations and standards and other increasingly stringent standards in developed markets.
The last comprehensive survey of the manufacturing sector estimated that there were 4,474 firms based across all sectors and that the food and beverages accounted for 984 firms. Sub classifying the food and beverages industries into those directly related or allied to the agribusiness sector, there were about 95 firms, or 10 per cent of the food, beverage and tobacco sectors; and 20 per cent of all industries in Pakistan which is minimal given the potential for value addition and processing provided by the large volume of horticultural crops produced.
It is estimated that about 1.5 million people could be employed in small and medium horticultural enterprises. It was said that enterprises engaged in horticulture business are generally either micro-scale village based activities, or large scale operation being undertaken by nationally recognized companies.
According to the ADB, there is a need to promote the growth of micro-scale horticultural enterprises and mini processing units to support the transition to small and ultimately medium scale enterprises to develop a competitive agribusiness sector in domestic and international markets.
The ADB has told the Pakistani authorities that agribusiness sector has the potential to be a source of economic growth and income generation with small farmers as major beneficiaries. There is a need for implementation of some better programme.
