September 20, 2006	Wednesday	Sha'aban 26, 1427

ISLAMABAD, Sept 19: Pakistan's export of seven major commodities-- construction materials, paints and varnishes, mild steel products, electronic goods, wheat flour, sugar, vegetable and fruits--to Afghanistan declined during the fiscal year 2006 over the previous year.Official data available with Dawn showed that only a few items, mainly cement, milk and cereals, pulses, ghee, rice, medicines, electrical goods and sanitary wares recorded a growth in exports to Kabul during the period under review.

In absolute term, the value of total exports to Afghanistan increased marginally by six per cent to $1.150 billion during the fiscal year 2006 as against $1.08 billion over the previous year.

It is believed that the Indian products are penetrating in the Afghanistan market because of their competitive price and quality. Moreover, the Indian officials posted in Afghanistan were also promoting their products by giving more facilities to their exporters.

Contrary to this, Pakistan has further complicated the procedures by directing exporters to verify their refund documents from Afghan customs officials posted at Pak-Afghan border. Despite complaints from exporters no action in this regard had been taken so far.

And the heavy freight costs followed by bribes to be paid to different agencies for transporting goods from Peshawar and Quetta to Afghan border at Torkham and Chaman are also adversely affecting exports.

Secondly, the inconsistent policies of the government regarding exports, particularly the levy of regulatory duty on sugar, wheat flour and withdrawal of refund on cement exports to Afghanistan had created panic among exporters, which in some cases even led to monetary losses.

In rupee terms, Pakistan's exports of fruits and vegetables declined by 18.84 per cent to Rs1,190.024 million during 2006, as against Rs1,466.392 million in the previous year; wheat flour decreased by 22pc to Rs5,898.154m against Rs7,572.451m; sugar declined by 41.5 per cent to Rs1,545.676 million against Rs2,639.884 million; construction materials dipped by 19.5 per cent to Rs881.076 million against Rs1,094.514 million.

Similarly, the export of paints and varnishes was down by 68 per cent to Rs890.738 million during the year under review as against Rs2,801.370 million in previous year; electronic goods decreased by 88 per cent to Rs22.088 million as against Rs186.234 million and mild steel products dipped by 46 per cent to Rs2,039.552 million as against Rs3,787.827 million.

The export of milk and cereals to Afghanistan increased by 68pc during 2006 to Rs1,408.154 million against Rs834.022 million during the previous year; rice increased by 36.5pc to Rs2,974.843 million against Rs2,178.246 million; grains and pulses by 247 per cent to Rs884.951 million as against Rs254.842 million.

The export of cement was up by 15.5pc to Rs3,761.347 million against Rs3,255.183 million; ghee by 2 per cent to Rs4,877.796m against Rs4,780.351m; sanitary wares by 124.8pc to Rs224.953m against Rs100.038m, electrical goods by 301pc to Rs2,271.172 million against Rs565.805 million; and medicines increased by 33 per cent to Rs624.098 million against Rs469.083 million.