ISLAMABAD, March 21: The government is likely to reduce the export target from $10 billion set for the current financial year, Dawn has learnt through an official source on Thursday.

The source said the decision in this connection was taken during the Federal Export Promotion Board meeting, presided over by President Gen Pervez Musharraf.

The source said that the president was informed that following the September 11 incidents, Pakistan exports fell by 2.99 per cent in comparison to that of the last year.

Elaborating the major reasons for the low exports, the source said that the president was informed that the unit value of Pakistani exportable items, particularly of textile goods had dropped drastically by over 20 per cent.

The recession in the international market followed by the less consumption in America and Europe has further aggravated the situation as most of the importers cancelled their orders.

Pakistan exports also declined due to appreciation of rupees against dollar following the US led attack on Afghanistan.

The president was also informed that due to fear of security and religious fanatics possible uprising, the foreign importers had cancelled their visit to place orders.

They preferred to buy goods at two per cent higher prices from the countries that have, the meeting was informed.

The total exports in the first eight months of the current financial year stood at $5.809 billion this year against $5.899 billion during the same period last year, a decrease of 2.99 per cent.