LAW AND ORDER

S.M. ABBAS ZAIDI, S.KAMAL HAYDER KAZMI,
Research Analyst
, PAGE
Aug
 10 - 16, 2009

CHALLENGES FOR TRADE DURING 2009-12

1. Absence of economies of scale in the production processes, especially in the Small and Medium Enterprise sector which accounts for a vast majority of the enterprises in the country.
2. Lack of product and geographical diversification in exports.
3. Increasing costs of exports as compared to imports.
4. Anti-export bias in taxation.
5. Little Foreign Direct Investment in manufacturing and exportable sectors.
6. Low levels of manufacturing value addition.
7. Low labour productivity.
8. Poor innovation and technological infrastructure.
9. Infrastructure deficit, particularly in energy.

TRADE TARGETS 2009-12

Merchandise Exports (US$ Bn) From 17. 8 to 23. 5
Competitiveness Ranking From 101 ≤ 75
Engineering Sector Export-Share From 1.5% ≥5%
Value – addition of Cotton From US$ 1000/bale to 1500/ bale
Expansion of Regional Trade From 17% ≥25%
FTAs EU, USA
Operational ROZs 7
Various sources

COMPETITIVENESS INDEX OF PAK

INDICATORS

RANKING

2007-08 2008-09
Overall Competitiveness 92 101
Infrastructure 72 85
Labour Market Efficiency 113 121
Financial Market Sophistication 65 71
Technological Readiness 89 100
Innovation & Sophistication Factors 78 85
Various sources (Ranking among 131 countries)

STRATEGIC TRADE POLICY OBJECTIVES 2009-12

1. Enhance the competitiveness of Pakistan’s exports.
2. Reducing Cost of Doing Business.
3. Protection and promotion of SMEs.
4. Focus on products with higher sophistication potential.
5. Promote agricultural development through exports.
6. Enable Pakistani exporting companies overcome the negative effects of global demand contraction.
Various sources

EXPORTS PROFILE (%) EXPORTS DESTINATIONS (%)
GOODS 2008-09 COUNTRY 2007-08 2008-09
Other Mfg groups 20 Ocean 0.9 0.9
Others 4 Africa 5.9 6.2
Food 17 America 23.1 22.3
Petroleum 5 Europe 28.5 26.3
Textile 54 Asia 41.5 44.3
Various sources

EXPORT OF MAJOR COMMODITY GROUPS (US$ BN)

PRODUCT GROUP 2007-08 2008-09 %
Food 2.83 3.02 6.7
Textile 10.57 9.56 - 9.5
Leather and Products 1.11 0.84 - 24.3
Chem. & Pharma. 0.62 0.61 - 2.1
Petroleum & Coal 1.26 0.81 - 35.5
Engineering 0 21 0 27 26.1
Other Manufactures 1.72 1.86 8.1
Others 0.73 0.81 11.0
Various sources

CUMULATIVE EXPORTS TO MAJOR COUNTRIES (Mn Rs.)

S.NO COUNTRIES

JULY – FEBRUARY, 2009

JULY – FEBRUARY, 2008

VALUE

% SHARE

VALUE

% SHARE

931,217.79 100 713,443.24 100
1 U.S.A. 174,126.22 18.7 149,091.21 20.9
2 U.A.E. 79,396.69 8.53 75,438.66 10.57
3 Afghanistan 76,027.07 8.16 40,314.65 5.65
4 United Kingdom 44,585.63 4.79 39,336.62 5.51
5 Germany 39,642.47 4.26 31,396.30 4.4
6 China 32,882.37 3.53 23,736.94 3.33
7 Italy 30,005.07 3.22 27,397.54 3.84
8 Netherlands 26,230.10 2.82 19,669.47 2.76
9 Iran (Islamic Rep.) 24,765.71 2.66 5,063.71 0.71
10 Saudi Arabia 21,885.21 2.35 12,940.68 1.81
11 Spain 21,759.51 2.34 20,885.51 2.93
12 Turkey 21,486.44 2.31 17,944.80 2.52
13 Bangladesh 20,939.03 2.25 11,916.18 1.67
14 Hong Kong 19,963.28 2.14 21,366.22 2.99
15 Belgium 19,649.51 2.11 15,069.63 2.11
16 India 19,604.54 2.11 10,020.02 1.4
17 France 16,172.42 1.74 14,647.08 2.05
18 Korea Rep. of 11,318.77 1.22 7,626.11 1.07
19 Oman 11,054.67 1.19 5,185.59 0.73
20 Sri Lanka 10,193.71 1.09 8,515.78 1.19
  Others 209,529.37 22.5 155,880.53 21.85
Various Sources

EXPORTS BY ECONOMIC CATEGORIES
(MN. RS)

YEAR/MONTH

TOTAL

PRIMARY COMMODITIES

SEMI-MANUFACTURES GOODS

MANUFACTURED GOODS

2003-04 709,036.10 70,716.00 83,360.90 554,959.10
2004-05 854,087.70 92,018.40 86,483.00 675,586.30
2005-06 984,840.60 112,268.30 106,029.30 766,543.00
2006-07 1,029,311.70 113,954.00 121,929.90 793,427.70
2007-08 1,196,637.60 171,669.90 127,090.40 897,877.20
2008 Jul 132,665.00 24,346.50 11,925.20 96,393.40
Aug 116,196.30 18,575.30 10,377.80 87,243.20
Sep 136,749.50 22,023.90 13,095.30 101,630.30
Oct 118,657.20 21,341.80 10,952.30 86,363.20
Nov 122,053.50 22,535.80 11,288.30 88,229.40
Dec 99,170.30 15,394.00 9,341.30 74,435.00
2009 Jan 106,447.50 16,121.50 10,109.20 80,216.80
Feb 99,278.50 16,671.40 9,732.50 72,874.70
Mar 105,248.60 16,642.60 10,381.10 78,224.80
Various sources