KARACHI, Aug 26: Dubai has emerged as the fastest growing and the second largest export market for Pakistan.

According to official figures compiled by the Export Promotion Bureau, Dubai accounts for nearly 50 per cent of the imports by the Middle East region from Pakistan.

Exports to the United Arab Emirates amounted to $728 million in 2001-02, of which, Dubai accounted for $720 million. Dubai’s annual imports from Pakistan exceed those by the UK $659 million, Germany $452 million, Netherlands $257 million, France $247 million and Canada $175 million.

However, with sales of $2.25 billion, the US is the largest export market for Pakistan. Whereas the exports to the United Sates have stagnated at about the same level in the past two years, Dubai’s imports have risen from $341 million to $720 million in three years ending June 2002. During this period, barring the UK, the exports to major industrialized countries like France, Germany, Belgium, and Canada show continuous decline.

The US and the European Union are, however, still the most important markets, whose imports together accounted for $4.7 billion against Pakistan’s total exports of $9.1 billion last year. The Middle East region accounts for $1.5 of export earnings against $2.5 billion for EU.

UAE , particularly Dubai, re-exported 12.1 per cent of its $34.5 billion imports in year 2000. These included Pakistani goods. It also imports inputs for its textiles, garment and knitting industry.

Percentage-wise, origins of imports by UAE are as follows: 44.4 per cent from Asia, 35.5 per cent from Europe and 11.1 per cent from America.

A wide range of goods are exported from Pakistan but the major share is of cotton and textiles. These include raw cotton, yarn, thread, cotton waste, cotton bags, fabrics, knitted fabrics, garments, hosiery and special textiles.

Core categories include rice, leather garments, gloves and manufactures, footwear, sports goods, carpets and rugs, wool and animal hair, surgical instruments, molasses and meat and meat preparations.

Imports also include fish and fish preparation, fruits vegetables, chemical and pharmaceutical products, electrical and non-electrical machinery, onyx, precious metals, jewellry, glass and glass ware, furniture, handicrafts and a wide range of items of daily use.

To strengthen trade, Pakistan wants triangular goods barter among the traders of Pakistan, Afghanistan and Dubai.

Dubai is also emerging as the financial hub for the region from which Pakistan can benefit as it does in dollar trading in the kerb. The government there recently announced that it would set up an International Financial Centre to serve as a regional hub for banking, finance and capital markets. No less than 26 foreign banks had opened branches by year 2000 against 18 foreign banks currently operating in Pakistan.