ISLAMABAD: The Ministry of Commerce on Tuesday informed the standing committee that exports were falling owing to multiple issues.

Secretary Commerce Shahzad Arbab briefed the meeting that in the financial year 2014-15, Pakistani exports amounted to $23.8 billion against $25.1bn during the corresponding period of last year, recording a decrease of 4.88 per cent.

On the supply side, exports were beset with severe shortage of energy supply, poor quality of infrastructure, outdated technology, lack of export culture and weak contract enforcement mechanism, he said.

“Pakistan’s export market lacks diversification and is concentrated only in few regions and countries. Some 51pc of exports are confined to six countries/regions including EU, US, UK and the Middle East. Pakistan has been unable to tap its export potential in the regional market and is facing tariff and non-tariff barriers in markets like Iran and India,” the secretary further said.

Trade facilitation at the border is another issue hampering growth of export. Corruption in border agencies and lack of coordination among them, and inadequate port infrastructure were also affecting exports, he added.

He said a shift in the demand from our top importing partner countries, decline in the international price of basic commodities and currency appreciation were reasons worth looking into.

“Decrease in the price of major commodities, decline in exports to China and UAE and depreciation of US dollar and Euro against Pak rupee are issues hampering exports,” he added.

He stressed that steps were being taken by the government to remove the impediments in export’s growth and new markets for exports need to be explored. The standing committee emphasised on the need that Pakistani embassies and ambassadors may play a pivotal role in export of all commodities, especially rice.

Standing Committee chairman MNA Muhammad Afzal Khokhar directed the interior and food ministries to prepare brief over the impediments, especially smuggling of goods that was harming local industries.

Published in Dawn, October 7th, 2015

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