Pakistan's Exports Performance
Memon, Dr. Noor Ahmed, Economic Review
Pakistan is an exporter of essentially labour intensive and agricultural raw material based manufactures. Highly concentrated on few items namely cotton group, leather group, rice, synthetic textiles and sports goods. The five categories of exports accounted for 80% of the country's total exports. Cotton based manufactures continue to dominate the country's exports portfolio, with around 60 per cent of total manufactured exports.
Pakistan's trade volume in 1998-99 was to the tune of US$ 17.21 billion of Which 45% was accounted for by exports. During 1998-99 Pakistan traded with 187 countries but major trading countries were the USA, Hong Kong, Germany, the United Kingdom, Japan, Dubai, Netherlands, Italy, France and Saudi Arabia which accounted for 64.0% of the total, exports.
Pakistan's export during the fiscal year 1998-99 was US$7.78 billion as compared to US$8.63 billion of corresponding period of 1997-98 thus showing decline of 9.8 per cent. The decline in exports despite liberal incentives provided to exporters, particularly to remunerate export proceeds at composite exchange rate, resulted due largely to a fall in international prices of almost all the major commodities in the wake of global recession and economic turmoil in East Asian countries. Moreover, exports were also adversely affected by shortfall in raw cotton output and deceleration of industrial growth, which had the effect of reducing the availability of exportable surplus of manufactured goods during the year. Pakistan's major exports is shown in table. The country's export earning during first six months of 1999-2000 have increased 7.4 per cent to $4.10 billion from US$3.82 billion in the corresponding period last year. The Pakistan government has fixed an export target of US$9 billion for 1999-2000. 15.7 per cent higher than the actual export of 1998-99.
Obviously the situation cannot be viewed with equanimity. The going in the' world market is not smooth owing to the global recession. Markets are shrinking while competition is becoming very tough. …