ISLAMABAD: The Ministry of Commerce (MoC), on Tuesday, recounted a number of reasons for 12.4 percent declining exports.
“Nonpayment of sales tax refunds, regional market barriers, lack of trade facilitation and poor research and development in raw material are equal responsible factors for declining exports” was the observation and clarifications made by the MoC’s team led by Secretary Commerce Azmat Ali Ranjha.
Furthermore the MoC named a number of other reasons, including global price decrease, weak investment, narrow export base, power shortages, security climate, the poor infrastructure, depreciation of currency and high tariffs. In this regard they took refuge behind the academic research and data by United Nations and International Monetary Fund (IMF).
The Senate Standing Committee on Commerce met here with Senator Shibli Faraz in the chair and was told that Pakistan’s exports have seen a decrease of 12.4 percent during the last year while the record high exports were witnessed in 2013-14 at $25.1 billion.
On clarification from the Ministry of Commerce, Chairman of the Committee remarked that Pakistan export policy had always been security centric but it should be trade centric. He also observed that managing exports was only one way of looking at it and considering the import-export balance was more important.
Ministry of Commerce responded that IMF had projected a 3.6 percent increase in global trade growth and rice and wheat commodity prices were also expected to rise in coming years. Brexit was termed a threat for Pakistan’s exports. It was stated that the GSP status being enjoyed by Pakistan currently is mainly due to British presence in EU.
Representatives from Pakistan Business Council while giving their opinion on Strategic Trade Policy Framework (STPF) and the decline in exports, it was stated that STPF does not adequately address the import-export alignment in the country and does not talk about domestic competitiveness.
They also said they substantial change in trade is not possible without a national vision which is above the inter-ministerial warfare and federal and provincial friction.
The chairman and members of the committee stressed upon measures for job creation and export generation. It was also emphasized that the drastic decrease in exports and drastic increase in imports have both affected domestic industry and have to be managed in comparison to each other to have a mix which is suitable. Besides Senators, Secretary Commerce and representatives of TDAP, FBR and Pakistan Business Council were also present in the meeting.
