950817

Last fiscal spurt reviewed with satisfaction

Govt looking

minutely into July

exports fall

IKRAMUL HAQ

ISLAMABAD: The export performance during 1994-95 was reviewed at a high level meeting presided over by Commerce Minister Ahmad Mukhtar on Wednesday.

The meeting, attended by senior officials of the Ministries of Industries and Production, Finance, Food and Agriculture, Export Promotion Bureau and CBR, expressed satisfaction at "dramatic" increase in exports from 6.8 billion dollars in 1993-94 to 8.1 billion dollars in 1994-95 and discussed measures to sustain this growth.

The ministry has fixed target for 1995-96 at 9.2 billion dollars.

However July, the first month of the current fiscal year, saw a decline of 7 percent as exports amounted to 513 million dollars. The meeting decided to have a minute look into the causes and remedies.

Sources stated that Wednesday's meeting was the first "brain-storming session" as more will be held among the bureaucracy to sustain the surge in exports. In terms of efforts, the Export Promotion Bureau suggested holding of exhibitions, trade fairs and delegations to foreign countries. In regard to strategy, the policy is being fine tuned. The requirements of export sectors were considered. The chronic problems of delay in duty drawbacks was taken up. Though Rs two billion has been paid in a month, the problem persists. While reviewing a healthy growth in exports to 8.1 billion dollars against the target of 7.8 billion dollars it was noted that increase in unit price was a major factor for the improvement. Export of sugar valued at 84 million dollars was seen as a positive development. The items which saw considerable increase included molasses, and guar products, footwear, pharmaceuticals and fisheries which alone earned $100 million. Agriculture provided main items of exports around 72 percent like rice, sugar, cotton and fisheries.

Diversification of trade was another positive feature as exports to South America surged by 21 percent, Africa 54 percent, East Europe 22 percent, Asian countries 29 percent and US 34 percent. In Saarc and ECO countries a marginal gains were recorded.

Another feature was growth in export of non-traditional items which earned over $ one billion after yarn, non-traditional items crossed this milestone.

To improve jewellery exports - an important non-traditional item, it is proposed to introduce a system of certification.

The facility will be set up in Karachi. The quality testing laboratory will give karate certification and ensure quality and high standard.

In regard to foreign objections to export of surgical goods from Sialkot, the meeting noted that on the advice of the foreign consultant, a quality testing laboratory is being imported to ensure better standards of these goods.

Regarding the increase in production of fish, it was suspected that deep sea stocks may deplete because of over-fishing. The meeting urged for strict watch on operations.

The meeting also considered the response of the trade policy measure to borrow foreign exchange for exports and it was noticed that small traders would be faced with practical difficulties.

The meeting noted that for the first time exports touched 8 billion dollars. The previous record was 6.9 billion dollars in 1991-92. Moreover the 1.223 billion dollar increase in exports in one year was historic.

The biggest contributor to this growth is the "other" or non-traditional sector, whose exports increased by 51 percent to dollar 1.062 billion. This too is a record.

Of the dollar 1.223 billion increase in exports, $707 million of the increase was brought about by the non-textile sector.

Twelve sectors registered increased exports both in terms of quantity and value, accounting for 95 percent of the increase in export revenue. (see chart).

Non-textile products such as rice, leather, carpets, sports goods, surgical goods and non-traditional products account for 57 percent, of the increase in the value of exports.

In 1994, the total value of quota exports increased in value terms by 17 percent, however, during 1994, total quota utilization declined to 89 percent from 97 percent in 1993.

Sports goods industry recorded significant increase. In 1992-93 exports of sports goods were of US dollar 131 million. Last year, sports goods exporters took part in several trade fairs in the United States and Europe. EPB also sponsored a stall at the World Cup Soccerfest in Los Angeles. This was accompanied by extensive publicity of the fact that Pakistani soccer balls were being used by the World Cup organizers.

As a result of the promotional efforts of the Export Promotion Bureau exports of sports goods increased by 52 percent in 1993-94 to reach $199 million. Continued promotional efforts resulted in further increase in our sports goods exports in 1994-95, exceeding $246 million which is a record.

Exports during 1994-95

Items increased in both quantity and value

Values in US$ million

All Non-textile

Products Products

Items 1994-95 1993-94 Increase Increase

Rice 432 242 190 190

Cotton Fabrics 1,053 821 232 -

Hosiery 682 509 173 -

Madeups 158 129 29 -

Bedwear 315 286 29 -

Leather 262 224 38 38

Carpets 186 151 35 35

Raw Wool 10 6 4 4

Petroleum & Products 73 53 20 20

Sports Goods 246 199 47 47

Surgical Goods 105 93 12 12

Non-Traditionals 1,062 701 361 361

Sub-total $4,584 $3,414 $1,170 $707

Share in Increase 95% 57%

Total $8,036 $6,803 $1,233