April 16, 2006	Sunday	Rabi-ul-Awwal 17, 1427

KARACHI, April 15: Despite marked increase in exports, the United States and Europe are still receiving together about 60 per cent of Pakistan’s total foreign sales.

While most countries are searching new markets to avoid concentration of exports to a narrow range of nations, Pakistani exporters seem to have increased their concentration towards the US and Europe.

For the last four years the United States has become a focal point for increasing exports. The US has been importing one fourth of our total exports for last four years. From 2003 to 2005, exports to the US increased from Rs153 billion to Rs204 billion.

During the last eight months of the current fiscal, exports to the US rose by $373 million to $2.391 billion. The exports also increased to European markets.

The combined export to US and European markets during the eight months reached $5.719 billion compared to $5.486 billion the same period last year.

It showed that the exporters had failed to find new markets. The ministry of commerce and the Export Promotion Bureau (EPB) had also not been able to do much in this regard. This single direction export could create problems if diplomatic relations turn soured with these countries.

The data showed that the Middle East, which has enormous potential for Pakistani exports, could not be explored. India and China have almost captured those markets. Pakistan’s balance of trade is vastly in favour of Middle East because of huge oil import bills.

The prime minister’s visits to Far Eastern countries to explore these markets for Pakistani goods did not bring any change in the situation.

“Concentration of export growth in one direction is highly risky as it gives great advantage to the importing countries to exploit the situation as it happened with the African countries,” said an analyst.

He said that the African countries were in dire need to export their agricultural products but they only focussed on European and American markets, which are taking full advantage of their dependency.

Analysts said that the export-led growth trend should be changed as the country would not be able to absorb any shock. They said that the soaring trade deficit had made the balance of payment more vulnerable and could cause serious dent even this year if the government would have not sold assets like PTCL.

Pakistan hopes to increase its export by 20 per cent this year mainly on account of higher textile-based products, leather and products and rice.

“Our trade deficit is set to rise further as we are now going to import sugar, wheat, cement, iron and the list for imported essential items is expanding,” said another analyst, adding that the situation requires serious look into the exports growth and its direction.

Pakistan fears that the trade deficit would widen up to $10 billion by the end of the current fiscal.