[Credited to a group of 6 x officers]
Issues of Market Access and Geographical Diversification.
Burdened by a perpetual negative balance of trade, Pakistan’s trade and commerce policy initiatives do not seem to bolster our exports. Reasons may vary from lack of coordination between the stake-holders, tunnel and simplistic vision regarding concept of globalization and regional trade, international trade parameters of the 21st Century, lack of product diversification and value chain management, ill-regulated domestic commerce to an obvious understanding deficit of the policy makers of the whole paradigm.
Pakistan’s exports concentrate only on the textile sector with little effort towards product diversification. Technology improvements in value chain have not touched local industry which lacks competitiveness even within the country. There is an absolute lack of competitive standards and quality management exacerbated by archaic regulatory mechanism. While power shortage may be a factor in less production capacity, the installed capacity of industry may also not be enough to gain additional market access and a foot print where other countries have already made a niche in the imports of the host country.
Regional trade is gaining strength world over due to proximity of markets but Pakistan’s reliance is still on a distant export location whose relationship strategically and politically is always fluid and not dependable. Our trade relationships are always strained with immediate neighbours except China for whom our exports form less than a percent in their imports. While India may have been denied transit access to ECO and CAR we have also not utilized this window to properly access that market. The RTAs and BTAs have not been well thought out. In most cases our strengths in export have not been made part of the preference.
We have not been able to utilize trade diplomacy – in fact it has been the other way round where foreign missions which could be used to advocate trade diplomatically are planned to be closed while our neighbours plan treading uncharted waters in Africa, Latin America and the icy Arctic Council.
A serious re-think of our entire economy especially commerce and trade sector is required – that too by actual Specialists based on true data and experience than those in the habit of desk reviews alone. Only through a vibrant and structured policy with time-lined implementables can Pakistan hope to achieve any sort of benefit from the globalization at high pace which has nearly overtaken us. Market capture by our competitors can only be pre-empted by increasing market access, geographical and product diversification, value chain management and increasing competitiveness.
|
AFTA
|
Asean Free Trade Area
|
|
ASEAN
|
Association of South Asian Nations
|
|
BTA
|
Bilateral Trade Agreement
|
|
Bil
|
Billion
|
|
BIMSTEC
|
Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation
|
|
ECOTA
|
Economic Co Operation Organization Trade Agreement
|
|
EHP
|
Earliest Harvest Programme
|
|
EU
|
European Union
|
|
GATT
|
General Agreement on Tariff and Trade
|
|
GCC
|
Gulf Cooperation Council
|
|
IMF
|
International Monetary Fund
|
|
MERCOSUR
|
Mercado Comun Del Sur (South American Common Market)
|
|
Mil
|
Million
|
|
MT
|
Metric Ton
|
|
NAFTA
|
North American Free Trade Agreement
|
|
NTB
|
Non Tariff Barrier
|
|
PT
|
Preferential Treatment
|
|
PTA
|
Preferential Trade Agreement
|
|
RTA
|
Regional Trade Agreement
|
|
SAARC
|
South Asian Association for Regional Cooperation
|
|
SAFTA
|
South Asian Free Trade Area
|
|
STPF
|
Strategic Trade Poliucy Framework
|
|
USD
|
United States Dollar
|
|
WB
|
World Bank
|
|
WTO
|
World Trade Organization
|
Section 1 – Pakistan’s Trade
1.1 Globalization versus Regionalism in Trade
Interdependence of countries resulting from the increasing movement of factors of production, integration of trade, finance, people, technology and ideas in one global marketplace has led to ‘Globalization’. International trade and cross-border investment flows are the main elements of this integration. Globalization started after World War II but has accelerated considerably since the mid 1980s, more so due to increasing liberalization of trade and capital markets: more and more governments are refusing to protect their economies from foreign competition or influence through import tariffs and NTBs such as import quotas, export restraints and legal prohibitions. A number of international institutions established in the wake of World War II—including the WB, IMF, GATT, WTO have played an important role in promoting free trade in place of protectionism. [1]
GATT came into force on 1 Jan, 1948 and remained in vogue till 1994 with Pakistan a signatory to it. The objectives of GATT included trade towards raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, developing the full use of the resources of the world and expanding the production and exchange of goods. The member countries agreed to enter into reciprocal and mutually advantageous arrangements directed towards substantial reduction of tariffs and other barriers to trade and to the elimination of discriminatory treatment in international commerce. [2] After the Uruguay round of GATT negotiations during 1986-94 the WTO came into being on 1 Jan, 1995. It extended GATT as, in addition to it, WTO comprises the General Agreement on Trade in Services and the agreements on Trade Related Aspects of Intellectual Property Rights. GATT also was, at least formally, only an agreement between contracting parties and had no independent existence of its own while the WTO is a corporate body recognized under international law.
WTO is basically “Trade Without Discrimination” and enforces equal treatment for all Member Countries, their citizens in all Members, promotes fair competition and encourages development and economic reform. [3]
RTAs, mostly reciprocal, have become increasingly prevalent since the early 1990s. As of 31 July 2013, some 575 notifications of RTAs had been received by the GATT/WTO. Of these, 379 were in force. [4]For the purpose of minimalism FTAs and PTAs would also be included in this paper under RTAs although they are unilateral trade preferences. Some of the significant RTAs are EU, NAFTA, AFTA, GCC, MERCOSUR etc.
1.2 Pakistan – Trade Agreements
Pakistan has signed SAFTA as an RTA, FTAs with China, Malaysia and Sri Lanka and PTAs with Mauritius, Indonesia and Iran. An assessment and analysis of individual agreements has been framed and given below. All figures are in USD Million and for sake of convenience each Agreement has an exclusive block:
|
SAFTA
(6 Jan, 2004)
|
Exports before Agreement
|
Exports Volume 2011-12
|
% age (+/-)
|
|
886 in 2003-04
|
3533 in 2011-12
|
300 %
|
|
|
Major Exports
|
Rice, fish, raw cotton, woven cotton fabrics, cotton yarn, synthetic fabrics, raw sugar, pharmaceuticals products, machinery & its parts and iron & steel.
|
||
|
Analysis
|
Issues of political nature between Pakistan and India have affected the true potential of trade (explained under Pak-India relationship later)
|
||
|
Pak-China FTA
(effective 2007)
|
Exports before Agreement
|
Exports Volume 2011-12
|
% age (+/-)
|
|
506 in 2006
|
2620 in 2012 [5]
|
417 %
|
|
|
Major Exports
|
Cotton / Textile, low grade Rice, Leather, Fish, gems, Chromium
|
||
|
Analysis
|
Pakistan is contributing 0.1 % to China’s imports along these product lines [6], whereas China has become the 2nd largest source of Pakistan’s imports, which are around 25 % of the total imports excluding petroleum products. China’s share in Pakistan’s total exports is 10.6 %. [7] The FTA does not grant any concession to Pakistan’s strength i.e. Cotton/textiles.
|
||
|
Pak-Malaysia FTA
(EHP – 2006, FTA 2007)
|
Exports before Agreement
|
Exports Volume 2011-12
|
% age (+/-)
|
|
60 in 2006
|
233 in 2012 [8]
|
288 %
|
|
|
Major Exports
|
Fish, Potato, Onion, Rice, Cotton, Yarn, woven fabrics, synthetic staple fibre, bed linen, leather footwear, cutlery, fruits, electrical appliances and accessories [9]
|
||
|
Analysis
|
Pakistan’s exports only form 0.118 % of Malaysia’s imports and have in fact declined from US$ 243.054 million in 2011 to USD 233.479 in 2012 whereas Malaysia’s imports actually increased from USD 187 Bil in 2011 to USD 196 Bil in 2012. [10] 45 % of Pakistan’s total exports to Malaysia comprise of non-PT products. Pakistan’s imports of Palm Oil from Malaysia are USD 1.12 Bil in 2012 [11] whereas market access to our Basmati Rice, in demand over there, is hampered due to state monopsony (BERNAS) which negotiates lower prices from Pakistan as an NTB.
|
||
|
Pak-Sri Lanks FTA
(12 Jun, 2005)
|
Exports before Agreement
|
Exports Volume
2011-12
|
% age (+/-)
|
|
153 in 2005
|
300 in 2012 [12]
|
288 %
|
|
|
Major Exports
|
Cement, oranges, Long Grained Pakistani Rice (basmati), vegetables and engineering goods. [13] Export of Rice is upto 6000 MT per year and potatoes upto 1000 MT during the off season. Cotton/textile and food group comprise nearly half of our exports.
|
||
|
Analysis
|
Sri Lanka has desired long term partnership in cement imports from Pakistan [14]
|
||
|
Pak-Indonesia PTA
(effective 1 Sep, 2013)
|
Exports before Agreement
|
Exports Volume
2011-12
|
% age (+/-)
|
|
USD 236 M in 2012 [15]
|
|||
|
Major Exports
|
Fresh fruits, fish, food items including rice and wheat, cotton yarn, cotton fabrics, readymade garments, fans, sports goods, leather goods and other industrial products
|
||
|
Analysis
|
Indonesia has offered market access to Kinnow (mandarin) and oranges from Pakistan at 0% tariff, providing level playing field to this product in the Indonesian market. Pakistan’s exports to Indonesia in 2011 were USD 188.5 Mil and in 2012 were USD 236.3 Mil. [16]
|
||
|
Pak-Mauritius PTA
(effective 30 Nov, 2007)
|
Exports before Agreement
|
Exports Volume
2011-12
|
% age (+/-)
|
|
35 in 2007
|
23 in 2012 [17]
|
(34) %
|
|
|
Major Exports
|
Rice, cotton yarn, woven fabric, cotton fabric, bakery items, pharmaceuticals
|
||
|
Analysis
|
The PTA is more beneficial as a transit towards African markets for Pakistani products.
|
||
|
Pak-Iran PTA
(effective 1 Sep, 2006)
|
Exports before Agreement
|
Exports Volume
2011-12
|
% age (+/-)
|
|
178 in 2005
|
141 in 2012 [18]
|
(20) %
|
|
|
Major Exports
|
Rice, Fruits, Cotton/textiles, Sea craft, Vegetables, Meat, Vegetable, chemicals, molasses
|
||
|
Analysis
|
India has captured Rice market in Iran. Exporters blame absence of a ‘Currency Swap’ agreement also. [19] Strict quarantine requirements of Iran also act as an NTB.
|
||
1.3 Pakistan’s Exports to other Regions & Countries
Pakistan’s exports to other trading partners is as below. The figures indicate Pakistan is such a minor trading partner in exports in most cases that it can conveniently be waived off:
|
Region / Country
|
Export in 2007 (in USD Millions)
|
Export in 2012 (in USD Million)
|
% age increase / decrease
|
% age market share of imports
|
|
US
|
3853
|
3668
|
(4.7)
|
0.16
|
|
ASEAN
|
419
|
1092
|
160.6
|
0.09
|
|
EU
|
4798
|
5306
|
10.5
|
0.09
|
|
UAE
|
21147
|
28728
|
35.84
|
1.42
|
|
OCEANIA
|
160
|
219
|
38.87
|
0.07
|
|
CAR
|
11
|
13
|
18.18
|
0.02
|
|
Afghanistan
|
837
|
2099
|
150.7
|
33.83
|
|
GCC
|
2765
|
3706
|
34.03
|
0.91
|
|
Hong Kong
|
608
|
416
|
(31.5)
|
0.08
|
|
Africa
|
985
|
1604
|
62.8
|
0.28
|
|
Japan
|
124
|
191
|
54
|
0.02
|
(Own calculation by the Group from information of ITC, trademap.org)
1.4 Pakistan-India Trade Relations
India and Pakistan were major trading partners after independence. In 1948-49, 56% of Pakistan’s total exports were destined to India and 32% of Pakistan’s imports were from India. India had granted MFN status to Pakistan in 1995. Pakistan did not reciprocate by granting the same concessions to India, which consequently maintained a number of Non-Tariff Barriers (NTBs) against imports from Pakistan. On the other hand, Pakistan maintained a ‘positive list’ of importable items from India which has been continuously increasing reaching 1945 items by the end of 2011. The bilateral trade between Pakistan and India jumped from USD 1.51 Bil in 2008-09 to USD 2.35 Bil in 2012-13 i.e. by 55 percent. Informal and illegal trade is also estimated to match the trade through legal channels.
Pakistan’s major imports from India comprise intermediate goods that being cheaper than alternate sources of imports enhance the competitiveness of our industry. The following table shows the year-wise figures of bilateral trade between India and Pakistan in the last five years in USD in Mil[20]:
|
Years
|
Exports
|
Imports
|
Total Trade
|
Balance
|
|
2007-08
|
254.858
|
1701.445
|
1956.303
|
(-) 1446.587
|
|
2008-09
|
319.619
|
1194.605
|
1514.224
|
(-) 874.986
|
|
2009-2010
|
268.332
|
1225.567
|
1493.899
|
(-) 957.235
|
|
2010-2011
|
264.3
|
1743.2
|
2007.5
|
(-) 1478.9
|
|
2011-2012
|
338.517
|
1507.328
|
1845.845
|
(-) 1168.811
|
|
2012-2013 till Apr
|
271.089
|
1568.750
|
1839.839
|
(-) 1297.661
|
Structural restrictions to trade and investment could be overcome if Pakistan grants MFN status to India. This would give fillip to free flow of goods and capital, as in the case of other countries under WTO regime. In the case of Pakistan, our exporters report Pakistan-specific bias in interpretation and application of the rules by the Customs and other Indian government departments. The tariff of India is 12.5% generally. However in the case of the products of export interest to Pakistan, the picture is more complicated. Textile and garments are subject to ‘composite tariff’ meaning that these are subject to specific tariff in addition to ad-valorem tariff. [21] The Pakistan-India Business Council’s website lists Joint Pakistan India Economic Zone, Petroleum University, Gwadar Oil City and Gwadar Oil Terminal as major initiatives. [22] Using a gravity model, the World Bank study concludes that had Pakistan and India traded as two other countries of comparable GNPs, population, and sharing a multitude of cultural ties, with a border in common and comparable distance between them, they would have both increased their level of import demands. [23]
1.5 Pak EU Trade (GSP Plus status)
The European Union (EU) in December, 2013 granted Generalized Scheme of Preferences (GPS) + status till 2017. The GSP + status will allow almost 20 % of Pakistani exports to enter the EU market at zero tariff and 70 % at preferential rates from January 2014. This status would enable Pakistan to export more than USD 1 Bil worth of products to European markets. [24]While Sri Lanka and Bangladesh enjoy duty free access to EU, China does not enjoy GSP Plus facility in EU. Thus Pakistani products shall have a cost advantage of nearly 14% over Chinese products in Textile made-ups. Similarly, India has graduated out from GSP facility for textiles and shall have to pay MFN duties. As regards textile made-ups and garments, India will be in the GSP (general) category while Pakistan enjoys the GSP Plus status.
Section 2 – Performance and Potential of Exports[25]
2.1 Export Commodities of Pakistan
The Textile Group includes Raw Cotton, Cotton Yarn, Cotton Cloth, Cotton carded and combed, Yarn other than Cotton Yarn, Knitwear, Bedwear, Towels, Tents, Canvas and Tarpaulin, Readymade Garments, Art Silk & Synthetic Textile and Madeup Articles including other textile. Textile sector contributed 53.3% share in total exports of Pakistan in 2012-13, which were 52.2% in 2011-12. The exports of Textile Sector have shown a mixed trend over the few years. The export of raw cotton has decreased substantially in the year 2012-13 but on the other hand exports of cotton yarn, Cotton Cloth, Knitwear, Bedwear, Towels, Tents, canvas & Tarpaulin and Readymade garments have witnessed a notable increase in their exports during 2012-13 as compared to 2011-12. Import Markets of Textile Products are USA, Canada, UK, Germany, Italy, Belgium, France, Spain, Netherlands, Turkey, Bangladesh and Sri Lanka. Top 5 exporters of raw cotton are USA, India, Australia, Brazil and Uzbekistan.
The Food Group includes Rice (Basmati and others), Fish and Fish preparations, Fruits, Vegetables including Leguminous Vegetables, Tobacco including Cigarettes, Wheat, Spices, Oil Seeds, nuts and Kernals, Sugar and Meat and Meat preparations. Its exports in 2012 amounted to USD 2.062 Bil from USD 2.807 in 2011. However, there is a trend of increase in 2012-13 primarily due to increase in exports of vegetables, spices and Meat and Meat preparations. [26]Import Markets include mainly UAE, Afghanistan, Kenya, Malaysia, Saudi Arabia and Oman. In Rice the top 5 exporters are India, Thailand, Vietnam, USA and Pakistan.
Sports goods include Footballs, Gloves and other sports goods. In 2011 and 2012 the exports are USD 218 Mil. Markets are Germany, USA, UK, Belgium, Spain, Denmark and Brazil.
Leather exports include Leather Tanned, Leather Garments and Leather Gloves. Footwear include Leather Footwear, Canvas Footwear and other Footwear. Leather Industry of Pakistan is among top 3 Foreign Exchange earners of the Country. The Total exports are USD 1143.9 Million in 2012-13 up from USD 1048.6 Million in 2011-12. It contributes 4.42% of our export earnings, 2.67% of manufacturing GDP and provides jobs to more than one million people. Its market (hides only) is Hong Kong, China, Italy, Korea, Vietnam, Turkey and Germany. Top 5 exporters in leather products are China, Italy, Hong Kong, France and Germany.
Chemicals & Pharmaceutical productsinclude Fertilizer Manufactured, Plastic Material, Pharmaceutical Products and other chemicals. Markets are Afghanistan, Sri Lanka, Vietnam, Philippines, Sudan, Myanmar and others.
Engineering Goods include Electric Fans, Transport Equipment, Auto Parts, Machinery specialized for particular Industries and other Electric Machinery. In 2012 the value of exports was USD 167 Mil from USD 150 Mil in 2011.
The Petroleum and Coal Group includes Petroleum Crude, Petroleum products including top naphtha and coal. Export of petroleum products has shown a fluctuating trend during the years 2007-2013. In the year 2007-08 exports were about USD 1259.4 Mil 2010-11 onward there is sharp decline in POL exports.
Other items include Molasses, Carpets, Rugs and Mats, Jewelry, Gems, Furniture, Handicrafts, Cement, Surgical Goods & Medical Instruments. Exports of Basic surgical instruments mostly of disposable products for year 2012-13 were USD 303.5 Million down from USD 303.9 Million in 2011-12. Major export destinations included USA, Germany, UK, France, Italy, India, China, Russia, Japan and Australia. Similarly in 2012-13, Pakistan exported carpets (hand knotted) of worth US$ 122.4 million up from USD 120.8 Million of 2011-12. Major destinations were USA, Germany, Turkey, Italy, France, Japan, South Africa, United Kingdom, Canada and Afghanistan. Exports in gems in 2012-13 were of USD 4.6 Million while in Jewelry they were USD 1177.5 Million. Major markets are USA, UAE, U.K , Hong Kong, Germany, Thailand and Canada. Pakistan also exports Cutlery, Guar and Guar Products.
However, despite such diversity in exports the trade balance is in negative. Different Pakistani state institutions provide different data. State Bank of Pakistan calculates the difference as USD (15,406) Mil (Exports – Imports = 24795 – 40199) while the Bureau of Statistics, for the same period 2012-13 puts it at USD (21288) Million (Exports – Imports = 23664 – 43498) justifying an urgent need for increase in market access, geographical and product diversification, value change management amongst other measures.
2.2 Export Potential
The ‘Gravity’ Model of trade based on data for the period 1981-2005 across 42 countries indicates that Pakistan’s trade potential is highest with ASEAN, EU, the Middle East, Latin America and North America. Specifically, the maximum potential exists with Japan, Sri Lanka, Bangladesh, Malaysia, the Philippines, New Zealand in the Asia-Pacific region, Norway, Sweden, France, Italy and Denmark in the EU block, with Iran in the Middle East and with Mexico in Latin American region. SAARC’s low potential is due to political considerations between the member counties similar to Pakistan’s exports to EU and NAFTA getting adversely affected due to this same reason. The sectoral level analysis indicates the existence of high trade potential in textiles, leather products, chemicals, food, beverages, and tobacco products. [27]
2.3 Product Diversity
Diversity is required in exports to reduce vulnerability to demand side shocks and price swings in international markets.[28]Diversity could be achieved through improving the quality of existing exports, breaking into new geographic markets, increasing services exports and increase of production of goods and services used as inputs for export. Exports diversification could be done from traditional to non-traditional exports, agricultural to manufacturing exports, low productivity to high productivity goods and upgradation of quality of existing goods.
Pakistan needs product diversification in order to get a quantum jump in its exports level and to capture niche markets. The product categories are fisheries, poultry, fruit, vegetables, wheat, IT software and services, marble and granite, gems and jewelry, engineering goods, chemicals, healthcare and general services including that of back office. Pakistan should also capitalize on opportunities provided by e-Commerce.
Pakistan should look in the region around itself and look for export opportunities in nontraditional areas by becoming part of supply chains through regional trade. For example low-cost engineering goods imported from China should be assembled as intermediate goods in Pakistan and exported to regional markets after value-addition. Similarly, we should look for opportunities for trade in very basic industries in Afghanistan. Services sector like banking and information technology can become a major source of our exports as our workforce is English-speaking and can tap markets left by India as it matures into becoming IT hub for the world.
Similarly we can utilize opportunities offered by internet and e-commerce to market products like our fashion garments to customers around the world through small and medium sized entrepreneurship. Women who constitute one half of our labour force and are usually underutilized can be trained in embroidery and fashion garment industry to export their products to neighbouring countries like India without profiteering at the hands of middlemen.
2.4 Value Chain – Case Studies on Textile and Leather groups
The four essentials of Value Chain are (i) Raw Material; (ii) Semi Finished Product; (iii) Finished Product; and (iv) Branded products. In cotton/textile sector the steps are raw cotton, spinning producing yarn, weaving/knitting, dyeing/finishing, fabrics going towards branding and product design. [29]The Syndicate carried out an exercise to evaluate pricing [30]and percentage amongst all the cotton / textile related products as below, with the exported value in USD in thousands:
|
S.No
|
Product label
|
Exported value in 2010
|
Exported value in 2011
|
Exported value in 2012
|
%age
|
|
1
|
Cotton
|
248,874
|
380,262
|
377,425
|
3.7%
|
|
2
|
Cotton, not carded or combed
|
216,745
|
359,348
|
373,078
|
3.7%
|
|
3
|
Cotton, carded or combed
|
32,129
|
20,914
|
4,347
|
0.0%
|
|
4
|
Bed, table, toilet and kitchen linens
|
2,639,180
|
2,844,973
|
2,516,655
|
24.9%
|
|
5
|
Curtains, drapes & interior blinds
|
114,860
|
118,937
|
106,253
|
1.1%
|
|
6
|
Blankets and travelling rugs
|
26,842
|
27,501
|
30,128
|
0.3%
|
|
7
|
Cotton yarn (not sewing thread) 85% or more cotton, not retail
|
1,628,691
|
1,954,691
|
2,102,655
|
20.8%
|
|
8
|
Woven cotton fabrics, 85% or more cotton, weight over 200 g/m2
|
707,920
|
928,723
|
1,087,564
|
10.8%
|
|
9
|
Woven cotton fabrics, 85% or more cotton, weight less than 200 g/m2
|
668,591
|
789,914
|
728,088
|
7.2%
|
|
10
|
Woven cotton fabrics, less than 85% cotton, mxd with manmade fibers, w
|
409,138
|
524,994
|
491,225
|
4.9%
|
|
11
|
Cotton, not carded or combed
|
216,745
|
359,348
|
373,078
|
3.7%
|
|
12
|
Woven fabrics of cotton
|
200,355
|
258,345
|
215,635
|
2.1%
|
|
13
|
Men’s shirts, knitted or crocheted
|
583,127
|
626,528
|
543,286
|
5.4%
|
|
14
|
Men’s suits, jackets, trousers
|
255,947
|
344,326
|
293,650
|
2.9%
|
|
15
|
T-shirts, singlet and other vests, knitted or crocheted
|
307,061
|
324,603
|
290,836
|
2.9%
|
|
16
|
Panty hose, tights, stockings & other hosiery, knitted or crocheted
|
276,146
|
267,701
|
259,925
|
2.6%
|
|
17
|
Women’s suits, dresses, skirt etc & short, knit
|
135,571
|
130,499
|
128,013
|
1.3%
|
|
18
|
Women’s blouses & shirts, knitted or crocheted
|
75,004
|
81,983
|
67,745
|
0.7%
|
|
19
|
Men’s underpants, pajamas, bathrobes etc,
|
49,959
|
61,191
|
51,385
|
0.5%
|
|
20
|
Women’s slips, panties, pajamas, bathrobes etc, knitted/crocheted
|
51,923
|
48,285
|
34,854
|
0.3%
|
|
21
|
Babies’ garments, knitted or crocheted
|
24,477
|
34,412
|
29,429
|
0.3%
|
|
Total
|
8,869,285
|
10,487,478
|
10,105,254
|
According to Sheikh Ilyas Mehmood, Chairman Pakistan Textile Exporters Association the grey cloth sold by Pakistan gives us a profit of Pounds Sterling 3 but with dyeing and finishing the importer in UK earns 12. According to Mr Jawed Bilwani, Chairman Pakistan Apparel Forum and Rana Muhammad Mushtaq Khan, Chairman Pakistan Hosiery Manufacturers Association value added apparel sector is converting raw cotton of 67 cents into value added finished goods worth 5-6 USD. [31]
Taking the above multipliers and calculations of itemized / step wise value chain of cotton / textile exports for 2012, the following estimates have been arrived at:
|
Stage 1
Raw Cotton
|
Stage 2
Spinning / Yarn
|
Stage 3
Weaving & made ups
|
Stage 4
Garments
|
Total
|
|
|
Present value of exports
|
USD 1127 Mil
|
USD 2102 Mil
|
USD 5175 Mil
|
USD 1699 Mil
|
10103
|
|
Sheikh Ilyas formula 1:4 utilizing 50% of raw cotton
|
USD 563 Mil
|
USD 2102 Mil
|
USD 5175 Mil (existing) + USD 2252 Mil (from conversion of 50% raw cotton)
|
USD 1699 Mil
|
11792
(16.71 % value addition)
|
|
67 cents to USD 5 formula utilizing 50% of raw cotton
|
USD 563 Mil
|
USD 2102 Mil
|
USD 2653 Mil
|
USD 1699 Mil (existing) + USD 7544 Mil (6700/500*563)
|
17084
(70 % value addition)
|
Similarly, the total exports, item-wise, of leather and leather products is USD 2000 Mil.
Conversion of raw hides / leather towards finished products has been calculated by a Kenyan Govt study which gives the value addition ratio as Raw : Finished Leather : Finished Product as 1:4:12. [32]Converting / value adding to 50 % of the raw hides into finished leather and 50 % of the finished leather to finished product, the benefit comes as under:
|
Raw Hide
|
Finished Leather
|
Finished Product
|
Total
|
|
|
Existing export
|
USD 457 Mil
|
USD 776 Mil
|
USD 767 Mil
|
2000
|
|
Utilizing 50 % of Raw Hide into Finished Leather
|
USD 228.5 Mil
|
USD 776 Mil + USD 914 Mil (228.5*4) = 1690
|
USD 767 Mil
|
2685
(34 % value addition)
|
|
Utilizing 50 % of the Finished Leather to Finished Product
|
USD 228.5 Mil
|
USD 1690 Mil / 2 = 845 Mil
|
USD 767 Mil + USD 2535 Mil (845*3) = 3380
|
4453 (122 % value addition)
|
2.5 Competitiveness
The Global Competitiveness Report 2013-2014 states that the world economy continues to emerge slowly from the recent economic crisis. As advanced economies are searching for ways to speed up their economic engines, emerging and developing countries have been important drivers of the global economic recovery. As a result, the nature of the relationship between advanced economies and emerging ones has evolved, and emerging and developing countries have created stronger ties among themselves. Among the advanced economies, two patterns seem to emerge: the United States, Canada, and Japan are expected to grow at a gentle pace, while the prospects for the euro zone are more uncertain. More generally, the new global economic landscape raises questions as to the very distinction between advanced and emerging economies, particularly when it comes to growth and competitiveness.
Competitiveness is determined under three Stages consisting of twelve Pillars. The stages and pillars are [33]:
|
Stage
|
Pillar
|
|
Stage 1:
Factor Driven
|
· Institutions – Legal & administrative framework
· Infrastructure
· Macro-Economic Environment
· Health and Primary Education
|
|
Stage 2:
Efficiency Driven
|
· Higher Education & Training
· Goods Market Efficiency – right mix as per supply-demand condition
· Labour Market Efficiency
· Financial Market Efficiency
· Technological Readiness
· Market size
|
|
Stage 3:
Innovation Driven
|
· Business Sophistication
· Innovation
|
Pakistan is still in Stage 1 out of 148 economies in various stages and part of the 38 in this Stage. In the overall Global Efficiency Index Pakistan is at 133 out of the 148 countries accessed. A comparative chart of Pakistan with regional countries would further highlight our competitiveness versus the region too:
|
Pillar and Position out of 148 countries
|
|||||||||||||
|
Country
|
Institutions
|
Infrastructure
|
Macro Economic Environment
|
Health & Primary Education
|
Higher Education & Training
|
Goods Market Efficiency
|
Labour Market Efficiency
|
Financial Market Development
|
Technological Readiness
|
Market Size
|
Business Sophistication
|
Innovation
|
|
|
Pakistan
|
123
|
121
|
145
|
128
|
129
|
103
|
138
|
67
|
118
|
30
|
85
|
77
|
|
|
Singapore
|
3
|
2
|
18
|
2
|
2
|
1
|
1
|
2
|
7
|
34
|
17
|
9
|
|
|
India
|
72
|
85
|
110
|
102
|
91
|
85
|
99
|
19
|
98
|
3
|
42
|
41
|
|
|
Nepal
|
127
|
144
|
41
|
81
|
130
|
127
|
133
|
95
|
133
|
100
|
129
|
129
|
|
|
Bhutan
|
44
|
87
|
109
|
91
|
107
|
121
|
29
|
123
|
132
|
143
|
117
|
114
|
|
|
Bangladesh
|
131
|
132
|
79
|
104
|
127
|
89
|
124
|
102
|
127
|
45
|
113
|
131
|
|
|
Sri Lanka
|
54
|
73
|
120
|
52
|
62
|
37
|
135
|
41
|
93
|
61
|
34
|
49
|
|
|
Iran
|
83
|
65
|
100
|
51
|
88
|
110
|
145
|
130
|
116
|
19
|
104
|
71
|
|
|
Indonesia
|
67
|
61
|
26
|
72
|
64
|
50
|
103
|
60
|
75
|
15
|
37
|
33
|
|
|
Malaysia
|
29
|
29
|
38
|
33
|
46
|
10
|
25
|
6
|
51
|
26
|
20
|
25
|
|
|
Brunei
|
25
|
58
|
1
|
23
|
55
|
42
|
10
|
56
|
77
|
131
|
56
|
59
|
|
|
Vietnam
|
98
|
82
|
87
|
67
|
95
|
74
|
56
|
93
|
102
|
36
|
98
|
76
|
|
|
Laos
|
63
|
84
|
93
|
80
|
111
|
54
|
44
|
91
|
113
|
112
|
78
|
68
|
|
|
Thailand
|
78
|
47
|
31
|
81
|
66
|
34
|
62
|
32
|
78
|
22
|
40
|
66
|
|
|
China
|
47
|
48
|
10
|
40
|
70
|
61
|
34
|
54
|
85
|
2
|
45
|
32
|
|
|
Azerbaijan
|
59
|
69
|
8
|
109
|
87
|
71
|
30
|
88
|
50
|
72
|
70
|
51
|
|
|
Kazakhstan
|
55
|
62
|
23
|
97
|
54
|
56
|
15
|
103
|
57
|
54
|
94
|
84
|
|
|
Kyrgyz Republic
|
133
|
122
|
113
|
107
|
97
|
116
|
96
|
112
|
129
|
120
|
130
|
145
|
|
|
Turkey
|
56
|
49
|
76
|
59
|
65
|
43
|
130
|
51
|
58
|
16
|
43
|
50
|
|
2.6 Domestic Commerce
Countries that have captured foreign markets have ensured quality control, product competitiveness and standards in their local markets. In order for a product to be competitive it has to have lesser input cost, better quality control standards, production on commercial scale and technological base. On the supply side the production should have ample raw materials, be subjected to lesser shocks like power outages and better standards. According to a proposal submitted to the Chief Minister Punjab an investment of USD 7000 Million is required to augment the energy generation potential of Pakistan to achieve the demand. [35]
Very little research has actually been conducted into the domestic commerce sector in Pakistan. MoC launched studies in 2006 on Competitiveness, Protection, Subsidies and incentive regimes, Market regulations, Retail markets, Wholesale markets, Storage and warehousing, Transport, Real estate etc. The reports concluded that domestic trade has small size of enterprises, predominantly sole proprietorship and informal sector, primitive business practices and attitudes, limited information flow and, most importantly, “lack of standards and quality in all aspects of transaction’’ including lack of concept of consumer rights inhibited competitiveness.
The reports continued that domestic commerce suffered from lack of human capital, poor infrastructure, high tariffs and power service quality with limited linkages outside of geographic area. The overall ability to compete was low and market did not play its true role in stimulating domestic production, generating growth and development. Value chain was disjointed and restricted the potential for development of both domestic commerce as well as international trade. [36]
Mr Salman Ghani, who has remained Federal Secretary Commerce and Secretary Industries, stated that without the development of local markets on structured lines improvements in exports, volume and quality, was not possible. He stated that we should focus on regional trade, product diversity and greater value addition. Entire dependence on textile sector was an essential fallacy. He stated that quality standards must first be ensured in domestic commerce and best way would be to ensure competitiveness instead of rebate margins. Our products should be environmentally correct and socially compliant. In product diversification we should concentrate on light engineering also such as fans, cables etc and ensure international compliances. Similar was the case with meat and poultry. Local markets suffered with distortions more so the archaic, and often not required, regulatory mechanism of the Government. There is no differential price for quality, he added.
2.7 Transport and Trade
During the ‘Regional Conference on Strengthening Transport Connectivity and Trade Facilitation in South & South West Asia’ held in Lahore on 9-10 Dec, 2013 under the auspices of UN Economic and Social Commission for Asia and Pacific (UNESCAP) it was highlighted that the traditional and historical route in the shape of a crescent running from Turkey through Iran, Pakistan, India and Bangladesh needs to be re-activated to join South Asia and South West Asia. This road and rail network would augment the already existing ports network and shipping lanes and even connect Bhutan and Nepal reducing dependence on fossil fuel and lessening freight charges. Transit traffic is traffic in services and would harmonize operated platforms, promote interoperability of transport services, inter-country infrastructure leading to more trade. The global concepts have in any case moved from port to port connectivity to door to door connectivity and in future would ensure networking of all areas on the same grid. The Conference noted that transport and transit facilities are needed not so much to cover ‘distances’ but to overcome border crossings. These result in opportunities of investment in warehouses, vehicles and ports for the host country inducing economic activities, rest areas, hotels, workshops etc. The economies of scale and improved connectivity reduce costs of the transit country’s own trade.
The Conference further analyzed that 57% of intraregional export potential remains unexploited in SAARC or 53% in South & South West Asia region. It could generate additional USD 52 billion of trade as the export potential of USD 167 billion by 2017 is there in intraregional trade between the three overlapping RTAs of ECO, SAARC and BIMSTEC.
The Conference proposed the potential trade corridors for integrating ECO, SAARC and BIMSTEC transport as below:
1. Turkey-Iran-Pakistan-India-Bangladesh-Myanmar Road Corridor along Asian Highway routes
2. Istanbul-Tehran-Islamabad—Delhi-Kolkota-Dhaka container train corridor along the Trans-Asian Railway routes [37]
3.1 Historical Perspective
During 1947-58, due to lack of infrastructure and major industrial base exports consisted of primary goods such as raw cotton, raw tea and jute etc. Major exports were to UK and India at 67 %. Exports to European countries were 10.4 %, USA 8.9 % and China 1.1 % in 1948-49. [38]Export incentives were introduced in 1954 and currency was also devalued in July, 1955 to increase exports. These efforts proved transitory as the exports again fell down in 1958-59. Subsequently Gen Ayub’s government introduced various initiatives to improve exports like Export Bonus Scheme (15thJanuary, 1959) on non-traditional commodities, Export Credit Guarantee Scheme (May 1962) to cover export risks, Export Market Development Fund (1966) to facilitate market surveys and established Trading Corporation of Pakistan in 1967 to implement barter agreements and bulk imports. Other measures included Pakistan Trade Offices abroad and introduction of annual export policy in 1968. A lot of new private enterprises were established. The share of manufactured goods in exports increased from 17.3% in 1958-59 to 47.78%. [39]
During Bhutto’s (1972-77) era the currency was devalued by 56 % to increase exports but the oil crisis of the 1970s had a severe impact. The thrust of policies favoured big exporters and the export destinations changed with USA now at 17 % followed by Japan (14.3%), UK (8.1%) and Saudi Arabia (6.9%). [40] Zia’s regime (1978-88) offered export rebates and income tax concessions for promotion of exports. Export licensing was simplified during 1988-99 and Foreign currency accounts were allowed to improve national deposits for fulfilling international commitments. Exports doubled during the period 1999-2009 but imports increased by four times resulting in extreme negative balance of trade, the major reasons for which were demand shrinkage, financial crisis, protectionist policies, power shortages, bad law and order, unskilled entrepreneurship, poor performance of commercial officers, amongst many. [41]
3.2 Strategic Trade Policy Frameworks 2009-12
STPF 2009-12 was framed to support macroeconomic policies & services; enhancing product sophistication level of Pakistani exports through innovation and induction of latest technology; enhancing firm level competitiveness through skills up-gradation, entrepreneurship development with efficient production processes; introducing domestic commerce reform through better storage facilities, improving supply chain with better business environment, quality management with improving tertiary level services; product and market diversification with the expansion of range of markets, upgrading quality of products and availing opportunities offered under the then international business regime after WTO; and making trade work towards the sustainable development of Pakistan. [42]
3.3 Strategic Trade Policy Framework 2012-15
The STPF 2012-15 sets its goals as (i) Making export sector an engine of growth; (ii) enhance Pakistan’s export competitiveness in short and long term; and (iii) increasing Pakistan’s cumulative exports to USD 95 Billion during 2012-15. The principal elements of STPF 2012-15 include; (i) Focus on Regional Trade – including establishment of Pakistan Land Port Authority; (ii) Create Regulatory Efficiencies; (iii) Promote Agro-based exports; (iv) Increase exports from less developed regions in Pakistan; (v) Promote exports in services sector – this includes creation of Foreign Trade Wing and a Services Export Development Council; (vi) Enhance access to export financing and credit guarantees – this include setting of Export Import (EXIM) Bank; (vii) Revamp Export Promotion Agencies; (viii) Mobilize new investment in export oriented industries (ix) Facilitate Exporting Industry overcome energy crisis (x) Enhance Product and Market Development and Diversification (xi) Undertake effective Trade Diplomacy (xii) Increasing Green Exports (xiii) Rationalize the Tariff Protection Policy (xiv) Enhance Role of Women in Exports Reform and Develop Domestic Commerce [43]
It has looked into the domestic factors but the external factors are not much supportive as the world economic recession is not over. Negative travel advisories by the major export destinations like USA, European Economic Union and other developed countries pose a serious challenge to the policy makers in Pakistan.
The global trend for trade is shifting from Agro-based produce to manufactured goods with enhanced value chain efficiency. The second noticeable shift is an emphasis towards the services sector including transport and tourism. Pakistan unfortunately not only lacks in tourism but its transport infrastructure and national carriers such as PIA and PNSC are all in a weak state. [44]
3.4 Donor Assistance on Trade Management
Pakistan has been currently benefiting from a €10 million TRTA II programme funded by EU since January 2010 with major focus on the public sector and a €4.5 million TRTA III private sector development programme which has just started. The TRTA II focuses on WTO-related public sector capacity building through support towards evaluation of FTAs and PTAs. It includes gender and environment as crosscutting issues. TRTA II has 3 components: trade policy capacity building; export development through improvement of quality infrastructure; and strengthening of the intellectual property rights framework and infrastructure;
TRTA III is a Private Sector Development Program running for the years 2011-17. Its focus is on private sector development via export diversification and promotion; in two sectors i.e. Leather products and Gems & Jewellery sector via privates sector organisations. It has a separate component in Fisheries sector to emphasize on the advantage of lifting of ban by EU. [45]
3.5 Trade & Economic Diplomacy
The term ‘Economic Diplomacy’ was first used by Chinese Premier at his meeting with the representatives from developing countries in August 2004. China’s economic diplomacy has experienced two stages: the previous one was characterized by the fact that economy promoted diplomacy and the current one is that diplomacy promotes economy Currently, China enters into the stage that economy and diplomacy mutually support each other, that is, economy, politics and diplomacy are more balanced.
The differences in perceiving the role of economy and diplomacy in these discussions are in line with the two types of economic diplomacy defined by Yi Lu, a professor of China Foreign Affairs University. In his view, the first type is to use economic means to reach specific political objectives or diplomatic strategic intention; the second is to focus on economic relations in the state’s external relations. Through developing its own economy and relying on diplomatic approaches, the state is to solve economic issues, rectify and coordinate economic policy, safeguard the state’s rights in its external economic relations, and increase national economic interest. [46]
Canada has an agency called Trade Commissioner Service[47](TCS) which is part of Canada’s embassies and consulates abroad. It provides on-the-ground intelligence and practical advice for better, more timely and cost-effective decision-making in matters of international trade through privileged access to foreign governments, key business leaders and decision-makers.
The service helps thousands of companies each year to handle concrete problems and pursue trade opportunities in foreign markets with presence in 150 cities across the globe. It also has offices inside Canada to offer help to prospective customers. Its business contacts include potential customers, distributors, sources of finance or investment, technology partners and intermediaries. TCS helps customers to export, establish company abroad, tackle a market access issue, pursue a joint venture abroad, participate in global value chain and seek technology.
Pakistan on the other hand relies solely on Trade Officers and is planning to shut down 22 Missions. [48]On the other hand, China & India have got ‘observer’ status in Arctic Council of all the places. [49]
Conclusion
Regional trade provides the best opportunities for export due to lesser transport cost and trade diversion. Therefore, Pakistan’s focus should be more on regional trade for market access and geographical diversification.
While inking trade agreements, Pakistan’s exports interests have, in particular cases, not been properly protected in terms of providing market access to our major exports by lowering tariff and NTBs on goods in demand in the importing country.
Issues of political nature between Pakistan and India have affected the true potential of trade not only between the two countries but in the whole SAARC region.
Pakistan has not fully realized the potential of RTAs and BTAs as a stepping stone for transit of Pakistani exports / products to new markets such as Africa.
While geographical presence of Pakistani exports is there in most areas of the world, its share in the overseas markets remains negligible due to, amongst others, lack of market research and synergies between public and private sector stakeholders.
The traditional exports of Pakistan like Textiles, Rice and Leather are of world-class quality and requires demand-based increase in market share in existing markets as well as exploration of new markets.
The efficiency of traditional sectors needs be enhanced by investing in value chain, upgradation of technology and skill development of human resource.
Pakistan needs product diversification towards non-traditional items presently in demand in international markets such as fisheries, halal food including poultry, fruit, vegetables, wheat, IT software and services, marble and granite, gems and jewelry, tobacco, engineering goods, chemicals, healthcare and general services including that of back office.
Pakistan’s supply chains through regional trade are not formed. Services sector like banking and information technology can become a major source of our exports as our workforce is English-speaking and can tap markets left by India as it matures into becoming IT hub for the world.
Pakistan’s position in the Global Efficiency Index is generally poor compared to regional countries. Urgent measures need to be taken to improve our standing.
The supply chain in domestic commerce is very primitive due to lack of market data, Farm to Market Roads and perishability of agricultural produce. Domestic commerce suffers from lack of human capital, poor infrastructure, high tariffs and power service quality with limited linkages outside of geographic area. Value chain is disjointed and has restricted the potential for development of both domestic commerce as well as international trade.
Pakistan needs to develop rail and road linkages with its neighbours on fast track basis.
Our policy of disallowing transit trade for Indian goods towards CARs and ECO countries needs to be revisited.
The overall design of STPFs is forward looking and based on ground realities. However, there is no proper implementation and monitoring & evaluation structure comprising all stake-holders including ‘Specialists’ to take a complex subject such as “Commerce and Trade” forward.
The emerging economic powers are now focused on trade-led diplomacy while Pakistan lacks in this respect. Pakistan’s foreign missions are not designed towards trade diplomacy.
Recommendations – Strategy
Regional trade provides the best opportunities for export due to lesser transport cost and trade diversion. Therefore, Pakistan’s focus should be more on regional trade for market access and geographical diversification. (Medium to Long term)
To derive maximum benefit out of the regional trade Pakistan should not only go for freer trade in more and more diverse product and services in the region but should also look into the existing agreements for easing of tariff and NTBs strictly in light of our comparative advantage. (Medium to Long term)
The conversion of PTAs with Iran, Indonesia and Mauritius into FTAs may be examined to further reduce tariff barriers keeping in view our interests. A brief interlude of EHP may be launched before the FTA to monitor its progress; (Short to Medium term)
The existing FTAs may be re-visited to abolish the list of items which are not even produced in Pakistan and add items which Pakistan actually exports or which are in demand in the importing country. (Short term)
In FTA with China duties imposed on our textile products should be re-negotiated to rationalize them to put Pakistan exports at a level playing field with ASEAN. (Short term)
In FTA with Malaysia, the concessions given by Pakistan through reduction of tariffs on palm oil as their principal export should be reciprocated by inclusion of concessions for our Basmati Rice and kinnoo which are in demand there instead of non-utilized concessions for poultry and round cabbage. (Short term)
Pakistan should reciprocate MFN status to india and change the nomenclature to Non Discriminatory Access immediately in order to get access for its textiles produce in the Indian market and develop low cost supply chains of intermediate goods at home from primary goods imported from India. (Short to Medium term)
Pakistan should fully realize the potential of trade agreements as a stepping stone for transit of Pakistani exports such as using PTA with Mauritius to expand our exports into Africa. (Short to Long term)
A Market Intelligence, Research and Exploration Commission may be formed at the national level as an e-Commerce initiative, comprising businessmen, manufacturers, researchers, producers, public sector representatives etc with TDAP acting as support unit serving as a hub. This Commission should be connected to all Trade Officers of Pakistan in foreign countries. Firms / individuals should be hired in those countries for market research, market access, standards / certification requirements etc. The connectivity of all stakeholders should be through internet with forward-backward linkages. The payment to the hired firms / individuals should be performance based. The purpose of the Commission would be to carry out market research and intelligence for a demand-based export in traditional and non-traditional products and services in existing and potential markets. The whole business process of the Commission would be web-based. (Short to Long term)
The EXIM Bank, already proposed, should extend low-interest loan to export related Industry for Balancing, Modernization and Replacement. It should also finance value addition in Industry and skills. Cascading in tariff structure to benefit value addition in exports must be introduced. (Short to Long term)
Exhibitions & Workshops as well as advocacy projection through media / internet must be carried out to ensure product diversification towards non-traditional items presently in demand in international markets such as fisheries, halal food including poultry, IT software and services, marble and granite, gems and jewelry, tobacco, engineering goods, chemicals, healthcare and general services including that of back office. (Short to Long term)
The factors determining Pakistan’s position in the Global Efficiency Index, already focused on the STPF, should be given priority. (Short to Long term)
The supply chain in domestic commerce should be improved through availability of market data, storage facility and Farm to Market Roads. and skilled human capital, infrastructure, high tariffs and power service quality with limited linkages outside of geographic area. Value chain is disjointed and has restricted the potential for development of both domestic commerce as well as international trade. (Short to Long term)
Maximum investment should be made in the four links through road and (where possible) rail, including links to connect China, Pakistan, Iran, Afghanistan and India. (Short to Long term)
A proper implementation and monitoring & evaluation mechanism may be evolved for the strategies detailed for promotion of Commerce and Trade in the STPF 2012-15. (Short term)
Pakistan’s foreign policy should give due importance to trade. The Trade Offices abroad must be strengthened and a new group “The Foreign Service and External Trade Group” must be introduced to further the economic/trade diplomacy through specialized human resource. (Short term)
Plan-B
Our worst-case scenario is that the power deficiency is not met due to lack of investment (USD 7000 Million are required) affecting our strategy to increase production towards exports. In such a case, instead of utilization of development funds for other purposes it should be capped for three years and diverted towards investments in power sector. The existing federal PSDP and Annual Development Plans of the Provinces is approximately USD 15 billion.
[1] Globalization and International Trade – World Bank, http://www.worldbank.org/depweb/beyond/beyondco/beg_12.pdfaccessed on 16 January, 2014
[2] http://www.wto.org/english/docs_e/legal_e/gatt47_e.pdfaccessed on 13 January, 2014
[3] http://rufuspollock.org/wto/wto_basicfacts.htmaccessed on 14 January, 2014
[4] World Trade Organization, http://www.wto.org accessed on 18 Jan, 2014
[5] International Trade Centre, http://www.trademap.orgaccessed on 20 Jan, 2014
[6] Own calculation by Syndicate
[7] Preliminary study on Pakistan and China trade partnership post FTA, The Pakistan Business Council, http://www.pbc.org.pk/assets/pdf/21-Oct_Pakistan_China_Trade_Study_2013.pdfaccessed on 16 Jan, 2014
[8] Op.Cit Note 5
[9] http://www.Pakistantoday.com.pkaccessed on 20 Jan, 2014
[10] Op.Cit Note 5
[11] Pakistan Exports to Malaysia grow by 6.15 percent, Pakistan Today, 28 Feb, 2013
[12] Op.Cit Note 5
[13] Ministry of Commerce, Pakistan, http://www.commerce.gov.pk/?page_id=215accessed on 18 Jan, 2014
[14] Cement sector outlook positive, Mohiuddin Aazim, The Daily Dawn, 11 Nov, 2012
[15] Op.Cit Note 5
[16] Pakistan and Indonesia Trade Partnership – Sep 2013, The Pakistan Business Council
[17] Op.Cit Note 5
[18] Op.Cit 5
[19] Rice Exports to Iran fall 82 %, Shahram Haq, The Express Tribune, 21 Mar, 2013
[20] Pakistan Bureau of Statistics
[21]http://www.pildat.org/publications/publicationaccessed on 15 January, 2014
[22]Pak India Business Council, http://pakindiabusinesscouncil.com/projects.htmlaccessed on 15 January 2014
[23]Trade Liberalization Between India And Pakistan: A Regional Perspective, http://www.sbp.org.pk/publications/pak-india-trade/Chap_5.pdf accessed on 16 January, 2014
[24] GSP Plus status to boost Pakistani Exports – says Dar, The Daily Dawn, 12 Dec 2013
[25]Submission of Ministry of Commerce on Performance of Exports before the Senate Standing Committee on Commerce held on 27th Nov, 2013
[26] Roadmap for Export Enhancement & Diversification in Pakistan, Research and Development Department, The Lahore Chamber of Commerce and Industry – Jul, 2013
[27]Gul, Nazia and Yasin, Hafiz.M, The Trade Potential of Pakistan: An Application of the Gravity Model, The Lahore Journal of Economics, 16 : 1 (Summer 2011): pp. 23-62
[28] Breaking into new Markets –Emerging lessons for Export Diversifications by Paul Brenton
wits.worldbank.org/WITS.docs/brenton_export_diversification
[29] Aid for Trade and Value Chains in Textiles and Apparels, WTO, www.oecd.org accessed on 20 Jan, 2014
[30] Op.Cit Note 5
[31] www.texglobe.com
[32] Presentation by Dr Mwinyikione Mwinyihija, Hides, Skins and Leather Value addition Initiatives; The Kenyan Scenario, http://www.undp.org/drylands/docs/marketaccess/Roundtableaccessed on 20 Jan, 2014
[33]The Global Competitiveness Report 2013-2014, World Economic Forum, http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2013-14.pdfaccessed on 16 January, 2014
[34] Own calculation by the Syndicate
[35] Mr Anwaar ul Haq, Director Investments, PIDB
[36] Domestic Commerce (Improving Competitiveness and Productivity) – Report prepared by Humayun Akhtar Khan and Approved by the Prime Minister of Pakistan in 2007
[37]presentations of the Conference through email by Mr Habibullah Khan, Secretary Ports and Shipping Pakistan
[38]Government of Pakistan, Ministry of Finance, Economy of Pakistan 1948-68. Islamabad: Department of Films & Publications, October 1968. 97-100.
[39]Ibid. 105-117.
[40]Government of Pakistan, Ministry of Finance, Survey of Pakistan .Islamabad: 1978-79.
[41]Dr. Ishrat Hussain, Economy of Pakistan – past, present and future. Washington DC: 27 January, 2004. Dr. Ishrat gave this address on Islamization and economy of Pakistan.
[42]Government of Pakistan, Ministry of Commerce. Strategic Trade Policy Framework 2009-11. Islamabad 2009.
[43]Ministry of Commerce, Government of Pakistan, Summary for Cabinet titled “Strategic Trade Policy Framework 2012-15” http://www.pcdapakistan.com/wp-content/uploads/2013/05/Strategic-TRADE-POLICY-2012-2015.pdfaccessed on 15 January 2014
[44] https://www.un.org/en/development/desa/policy/wesp/wesp_archive/2012chap2.pdfaccessed on 21 Jan, 2014
[45] Brief from information emailed by Additional Secretary, Economic Affairs Division, Government of Pakistan
[46]China’s economic diplomacy and Sino Eu relations, www1.euskadi.net/ekonomiaz/downloadPDF.apl?REG=1255 accessed on 20 Jan, 2014
[47]Government of Canada, Canadian Trade Commissioner Service
http://www.tradecommissioner.gc.ca/eng/how-tcs-can-help.jsp(accessed 20 Jan,2014)
[48]Syed, Baqir Sajjad, Govt considers closing down mission in 22 countries, the Daily Dawn, 5 Jul 2013, http://www.dawn.com/news/1022877/govt-considers-closing-missions-in-22-countriesaccessed on 20 Jan, 2014
[49]http://www.dawn.com/news/1011638/china-india-get-observer-seats-on-arctic-council
