KARACHI, Oct 19: Thursday’s blasts in Benazir Bhutto’s rally have sent shock waves across the globe as buyers immediately sent their e-mails to their Pakistani suppliers, informing about the cancellation of their visits.

They also hinted about diversion of their future orders to China and India.

The tragedy has affected political life and also made a deep dent on the economic front as export orders worth millions of dollars are going to be diverted from Pakistan to other countries.

“I was expecting my buyers to visit on Saturday, but early in the morning I got an e-mail message about the cancellation of their visit which dampened the hope of securing immediate export orders, but they also threatened to cancel our future export contracts,” lamented a leading garment exporter.

When Bangladesh remained in the grip of political turmoil, Pakistani exporters benefited as orders were diverted to Pakistan, and our Textile Minister Mushtaq Ali Cheema is on record having stated that our textile exports would increase on getting higher export orders.

But now Pakistan is faced with an even worst situation because increasing insecurity, resulting from day-to-day suicide bombing, has almost labelled the country as a most violent society on the face of the globe.

During first two months (July-August) of the current fiscal, exports grew by only 4.31 per cent at $2.963 billion over the corresponding period last year as these stood at $2.841 billion. But with the widening of current account deficit at around $13 billion, exports have to grow in the double digit.

In the same period, export of textiles which earns highest foreign exchange grew by only 1.18 per cent.

Barring a few items, major categories of textiles recorded a decline in exports. Towel export fell by 26.63 per cent, bedwear export by 15.58 per cent, tents and canvas by 19.04 per cent and cotton cloth by 15.10 per cent.

Presently, the gap is being met from rising foreign remittances and sale proceeds earned from privatisation of national assets. However, soon this will also be over once no asset is left to sell, economic experts believe.

Dismayed over the current situation, exporters are of the view that the country is once again faced with a grave situation which emerged immediately after 9/11 incident in 2001.

There was a sudden hate and disliking for Pakistani products and all western countries issued travel advisories to their nationals, restricting their visits.

“I feel we are on the path of self-destruction. Now we have reached a point where it has started causing economic loss,” observed a business leader.

For the last two days, industrial production remained almost a stand-still as very few workers managed to reach their workplaces in the absence of public transport and highly charged situation in the city, Madood Naqi, chairman, Korangi Association of Trade and Industry, said.

Shabir Ahmed, chairman, Pakistan Bedwear Exporters

Association (PBEA), said export trade had already been confronting problems, including high cost and some logistic issues.

The current situation has almost left us in a limbo as we cannot convince or argue with our foreign buyers when safety of human life is an issue. Foreign buyers do not visit any country where killings are rampant and they also do not place orders when there is no guarantee for timely delivery, he added.

Naqi Bari, chairman, Pakistan Hosiery Manufacturers Association (PHMA), said exporters had already been facing problems at different levels, including shutting out of their loaded containers due to inefficient working of terminal operators at Port Qasim.He said that the Anti-Narcotic Force (ANF) and the Customs Drug Enforcement Cell were also some of the major irritants the export trade has to face.

“We do not ask them about their duty, but the way the check our export goods is highly damaging, as they tear apart our packing which destroys the quality and look of our products,” he said.

The chief executive of the Trade Development Authority of Pakistan (TDAP) Tariq Ikram even called a meeting of ANF and terminal operators to sort out the issue, but he could not convince them on handling of export goods in a better way.

It is astonishing that ANF people tear apart all the packing of medicated cotton used in surgery. Cotton is supposed to be untouched by the human hand as it is used in the operation theatre.

Similarly, they also open the reefer containers carrying perishable goods, thus exhausting the refrigeration and cooling of the boxes.

However, the TDAP chief committed to provide sniffing dogs worth Rs2 million to assist the ANF in the discharge of their duty. But it could not be confirmed if the commitment has been fulfilled or not.