Pakistan’s Exports Decline for Eighth Straight Month: Bloomberg

By Khalid Qayum

July 13 (Bloomberg) -- Pakistan’s exports fell in June for the eighth straight months as the worst global recession since the Great Depression damped demand for the nation’s products.

Shipments from South Asia’s second-largest economy declined 19.4 percent from a year earlier to $1.54 billion are dropping 21.9 percent in the previous month, according to the statistics bureau. Imports tumbled 17 percent to $3.34 billion, taking the trade deficit to $1.8 billion.

Pakistan exporters are struggling to find buyers for the nation’s textiles and rice amid what the World Trade Organization says will be the worst contraction in global trade since World War II. HSBC Holdings Plc expects Pakistan’s $146 billion economy to expand as little as 0.8 percent in the year to June 2010, the weakest pace since 1952.

Overseas sales from Pakistan are being hit as “competitors elsewhere take an even greater share of a shrinking export market,” said Frederic Neumann, a senior economist at HSBC in Hong Kong.

Textile manufacturers in Pakistan compete against producers in other Asian nations including Sri Lanka, Bangladesh and Vietnam for sales in the U.S. and Europe, which are both in recession. Sri Lanka’s exports have declined for five straight months, falling 28.2 percent in April from a year earlier.

Cotton spinners in Pakistan and elsewhere still view the business outlook for the current quarter with a “great deal of caution,” according to a quarterly survey by Cotlook Ltd.

‘Optimism Faded’

“Optimism of a swift turnaround in fortunes seems to have faded in Pakistan, in the face of a slump in the pace of recent yarn orders,” Cotlook said in a statement on July 9.

Pakistan’s exports fell 6.7 percent to $17.8 billion in the full year to June 30 and imports declined 12.9 percent to $34.8 billion. The trade gap narrowed 18.5 percent to $17 billion, according to government figures.

While Pakistan’s exports receipts are eroding, the country is still accruing foreign reserves from record remittances from nationals working abroad.

Remittances from Pakistanis living overseas rose 21 percent to an unprecedented $7.8 billion in the year to June 30, the central bank said in a statement on July 10.

Workers in Saudi Arabia transferred $1.56 billion, compared with $1.25 billion a year ago. Pakistanis in the Gulf, including Bahrain, Kuwait, Qatar and Oman, sent home $1.2 billion, compared with $983 million a year earlier.

Global Rebound

Pakistan’s may also start to recover over the next year amid signs that the worst may be over for the world economy.

The International Monetary Fund last week said the global economic rebound in 2010 will be stronger than it forecast in April as the financial system stabilizes and the pace of contractions from the U.S. to Japan moderates.

For more on this article, please click on the following link: Pakistan’s Exports Decline for Eighth Straight Month: Bloomberg

Pakistan misses export target by over $4.5bln: Dawn

ISLAMABAD: With the rising cost of business and a slowing economy, Pakistan has missed its’ export proceeds target by a staggering $4.5 billion, suggesting a rapid shrink in the domestic market during the outgoing fiscal year, Dawn has learnt.

Contracting manufacturing growth, a main indicator of exports, is rendering thousands jobless, many of whom are already under pressure due to high inflation, lawlessness and uncertainty.

Provisional figures obtained by Dawn showed that due to a dip in export proceeds as well as substantial cuts in imports volume, the country’s trade deficit narrowed by 21 per cent to $16.49 billion in the outgoing fiscal year 2008-09 as against $20.914 billion last year.

Export proceeds dropped to $17.57 billion for the year 2008-09 from $22.1 billion target set for the same year. After witnessing successive shortfalls at the start of the year, the government projects export proceeds at $19.1 billion with a shortfall of $3 billion by the end of June.

Despite this downward revision, the government not only missed the revised export proceeds target but also fell short of last year’s export proceeds of $19.052 billion by eight per cent owing to policies undertaken during the year under review.

Analysts believed the greater cost of borrowing from banks, and low consumer demand in the international market for Pakistani products (particularly in the USA and EU) were to blame.

Pakistan’s exports to major markets USA, Germany, Japan, UK, Hong Kong witnessed negative growth.

With the massive decline in the oil price and some other essential commodities, the import bill dropped to $34.06 billion during the outgoing fiscal year 2008-09 as against $39.966 billion last year, showing a decline of 17.57 per cent.

For more on this article, please click on the following link: Pakistan misses export target by over $4.5bln: Dawn

Pakistan’s Trade Deficit Narrows 49.2% as Imports Decline: Bloomberg

By Farhan Sharif

April 10 (Bloomberg) -- Pakistan’s trade deficit narrowed by 49.2 percent in March as imports fell faster than exports.

The trade gap fell to $1.04 billion in the ninth month of the fiscal year ending June 30, from $2.05 billion a year earlier, according to data posted on the Web site of the Federal Bureau of Statistics in Islamabad.

Overseas sales fell 25.9 percent to $1.3 billion, while imports fell 38.4 percent to $2.4 billion, according to the data.

For more on this article, please click on the following link: Pakistan’s Trade Deficit Narrows 49.2% as Imports Decline: Bloomberg

Pakistan’s exports to US dwindle owing to gas shortage: Daily Times

By Tanveer Ahmed

KARACHI: Pakistan lost considerable share of its export to United States of America (USA) during the current financial year owing to host of reasons, sources in the export sector told Daily Times.

Textile and clothing was the main sector, which lost its share in the USA market as according to exporters and officials, the share of export to USA fell below 20 percent in total export volume compared to 22 to 24 percent in the previous years.

The sliding export to USA market has been causing concerns in the export sector of the country for quite some time as high cost of production coupled with high tariff structure on Pakistani export has been depriving the country from this high priced and lucrative American market.

However, the report of USA chamber of commerce a couple of days to ease the tariff slabs and provide greater market access to Pakistani exports has been seen as an encouraging move, which if implemented would definitely help Pakistan to regain its lost share in this market.

Although, global economic recession, which hurt USA severely contributed in dwindling Pakistani export to this market, other factors too made the situation tough for the local exports.

For more on this article, please click on the following link: Pakistan’s exports to US dwindle owing to gas shortage: Daily Times

Trade deficit falls 6.8pc to $11.62bn: The News

By Aftab Maken

ISLAMABAD: The trade deficit for the first eight months of the current fiscal year stood at $11.62 billion, registering a decrease of around 6.86 per cent compared to $12.47 billion in the same period last fiscal, the Federal Bureau of Statistics (FBS) said on Monday.

It is interesting to note that the balance of trade has for the first time registered a decline and also imports went into the negative zone, helping the policy-makers to keep current account deficit (CAD) well below 6 per cent of gross domestic product (GDP).

Decline in the balance of trade and imports clearly reveals that the economy is showing signs of slowness and it will continue to do so in the coming months, an analyst said. During July-February 2008-09, Pakistan’s exports totalled $12.16 billion and imports $23.77 billion against $11.66 billion and $24.14 billion, respectively recorded during the same period last year. Imports were 1.49 percent less than the same period last fiscal, while exports rose only by 4.25 percent, said FBS data.

For more on this article, please click on the following link: Trade deficit falls 6.8pc to $11.62bn: The News

‘Pakistan seeks more trade with US to overcome economic issues’ : Daily Times

NEW YORK: Pakistan is keen to expand trade with the United States (US) to overcome its economic problems, Ambassador Abdullah Haroon said on Tuesday, hoping the Obama administration would consider giving more market access to Pakistani goods. Speaking to a group of members of World Youth Institute, a United Nations-affiliated body, at the Pakistan Mission, Pakistan’s envoy to the UN hoped the US government, which is currently reviewing is Afghan policy, would devise a plan to not only deal with terrorism along the Pak-Afghan border but also to solve Pakistan’s economic problems. Pakistan's main exports – cotton and textile products – amounted to $7 billion, which had the potential of increasing to $15 billion.

For more on this article, please click on the following link: ‘Pakistan seeks more trade with US to overcome economic issues’ : Daily Times

Textile exports drop creating fear of big layoffs: Dawn

By Mubarak Zeb Khan

ISLAMABAD: The export of non-textile products soared by 24.5 per cent in the first seven months of the current fiscal year to $5.062 billion as against $4.066 billion over the last year mainly on the back of massive export of rice.

Though the export of these traditional products are on the higher side but exports on the whole decelerated sharply owing to decline in export of carpets and leather products during the period under review, suggested data of federal bureau of statistics.

The upward trend in the export of non-textile products has been witnessed since July 2008 indicating a natural diversification of the export base, owing to the highest ever depreciation of Pak rupee, which was highly concentrated in a few textile-based products.

But the export proceeds of carpets and leather products have witnessed a declining trend since December 2008 owing to higher cost of doing business and high competition from Chinese and Indian exporters.

The data released here revealed that the textile and clothing exports dipped by 3.79 per cent to $5.827 billion in July-January this year as against $6.056 billion over last year despite depreciation of rupee, which should have made Pakistan’s textile and clothing products more competitive.

It is also clear (from the fact that the import of textile machinery also dropped by over 41 per cent during the period under review over last year) that textile tycoons were not making any investment to improve the competitiveness of their products.

For more on this article, please click on the following link: Textile exports drop creating fear of big layoffs: Dawn

Pakistan's Dec trade gap narrows to $816 mln: Forbes

ISLAMABAD, Jan 10 (Reuters) - Pakistan's trade deficit narrowed to $815.92 million in December from $1.19 billion in December 2007, and fell from the deficit of $1.196 billion in November, the Federal Bureau of Statistics said on Saturday.

The deficit in the six months from July through December, the first half of the 2008/09 fiscal year, widened to $9.55 billion as compared to $8.29 billion in the corresponding period last year, the data showed.

For more on this article, please click on the following link: Pakistan's Dec trade gap narrows to $816 mln: Forbes

Pakistan needs aircargo makeover: AirCargo

Thursday, 20 November 2008

A Pakistan study has estimated that total air cargo in the country will increase from about 330,000 tonnes in 2004-05 to about 866,000 tonnes in 2015-16.
However, it has highlighted problems with the country’s air cargo handling facilities that will hinder growth if not rectified.

They include a lack of ground and aircraft capacity, charging anomalies, the lack of foreign cargo operations, security, lack of cold storage facilities and inefficient business processes.
About 95 per cent of Pakistan’s exports are by sea, but the tiny percentage of air freighted items are estimated to be worth eight per cent of the total value.

Exporters in the study complained there were security problems -- such as a lack of suitable lockers with strong rooms -- at Karachi, Lahore and Peshawar airports for gems, jewellery and other valuables.

For more on this article, please click on the following link: Pakistan needs aircargo makeover: AirCargo

Gold industry suffers from unfair competition: The News

Tuesday, November 11, 2008
By our correspondent

KARACHI: Pakistan is the eighth biggest consumer of gold in the world and annually imports 127 tonnes of gold but unfortunately there is no consumer satisfaction and Pakistani jewellery industry suffers from unfair competition by those who use low-carat gold and therefore, sell at a lower price.

This was the crux of a seminar titled ‘latest trends in jewellery hallmarking’ organised by Pakistan Gems and Jewellery Development Company (PGJDC) at the Gems and Jewellery Training & Manufacturing Centre (GJTMC), in Saddar, Karachi.

It was further highlighted that non-existence of hallmarking causes loss of exports and less acceptability of products, both in the local and global markets. Addressing the audience, Project Director (PITMAEM), Pakistan Council of Scientific and Industrial Research, Dr Shahzad Alam said that in order to improve the quality of jewellery products, complete quality assessment and hallmarking of gold is imperative.

He informed that hallmarking refers to physically marking a piece of jewellery according to specific laws to certify the purity of the metal. Hallmarks are small markings stamped on gold, silver and platinum articles.

For more on this article, please click on the following link: Gold industry suffers from unfair competition: The News

Pharma industry targets $500m exports: The News

Saturday, November 08, 2008
By our correspondent

LAHORE: Pharmaceutical industry, encouraged by crossing $100 million mark in exports, is focusing on achieving a target of $500 million by 2013 provided the government ensures elimination of producers of spurious drugs in local markets which affects the industry’s image abroad.

Pakistan Pharmaceutical Manufacturers Association Chairman Kashif Sajjad Sheikh stated this during a visit of Dr Asad Ashraf, Chairman Chief Minister’s Task Force on Spurious Drugs, to the Lahore Chamber of Commerce and Industry. He said the whole pharmaceutical industry would support the government and extend full cooperation in its drive against unqualified people, who were defaming the industry.

The chairman of chief minister’s task force on spurious drugs assured that stern action against all such unqualified people would be taken, who were harming the pharmaceutical industry for petty gains. He said the government was well aware of the fact that a few unscrupulous people were tarnishing the image of the whole pharmaceutical industry, which was not only catering to domestic needs but also earning foreign exchange for the country.

For more on this article, please click on the following link: Pharma industry targets $500m exports: The News

Expo Pakistan 2008 : $50m worth of business generated: Daily Times

By Tanveer Ahmed

KARACHI: Expo Pakistan 2008 has generated $50 million worth of business in the form of the export orders signed between local companies and foreign buyers.

“It will likely touch $100 million mark in the coming days when the business deals signed during the event will materialise,” Syed Mohibuallah Shah, Chief Executive Trade Development Authority of Pakistan (TDAP) told a news conference on Thursday at the concluding day of Expo Pakistan, which began on October 27, 2008.

“Only one business deal between a Korean company and local ethanol firm amounted to $10 million,” he informed Describing the mega trade and export promotion event of the country as successful venture by attracting more foreign buyers compared to previous exhibitions Shah said that successful holding of the event will help improve the image of the country. The participation of foreign buyers and local companies was so overwhelming that the available space in the Expo Centre became insufficient to cater such a large number of participants.

For more on this article, please click on the following link: Expo Pakistan 2008 : $50m worth of business generated: Daily Times

UAE's imports from Pakistan rise 50% to $1.8b: Gulfnews

By Nadia Saleem
Staff ReporterPublished: October 03, 2008, 23:41

Dubai: The UAE's imports from Pakistan increased 50 per cent this year compared with the previous year, according to trade figures from the Pakistani Commercial Office in Dubai.
Imports increased from $1.2 billion in 2007 to $1.8 billion in 2008. The UAE was the largest importer from Pakistan in the Arab region.
The Arab region imported goods worth $3.36 billion in the July 2007-May 2008 period, an increase of 40.4 per cent from the year before.

For more on this article, please click on the following link: UAE's imports from Pakistan rise 50% to $1.8b: Gulfnews

Pakistan to pip India in list of world's top rice exporters: Economic Times

NEW DELHI: For the first time in several years Pakistan is expected to pip India in the list of rice exporting countries because of export curb imposed here. According to the latest report of the US Agriculture Department (USDA), India will lose two ranks in the list to become the fourth largest rice exporter in calendar year 2008 while Pakistan would improve its position to third. In the USDA list of world's top 15 rice exporting countries, Thailand will remain at the top with an estimated 10 million export followed by Vietnam at 4.7 million tons. The report said Pakistan may export 3 million tons while India 2.8 million tons in 2008. India's rice exports may further take a dip to two million tons in 2009 while Pakistan will raise its overseas supply to 3.15 million tons, it said. Incidentally, this development has come in the 61st year of independence as both countries were liberated from the British rule in 1947. Commenting on the development, All India Rice Exporters Association President Vijay Sethia said, "India lost the opportunity which Pakistan and Vietnam took."

For more on this article, please click on the following link: Pakistan to pip India in list of world's top rice exporters: Economic Times