Low export growth rate due to global recession: Dawood

ISLAMABAD, May 30 (APP):Pakistan’s garments, knitwear, cement, food, footwear exports increased in term of quantity, however due to global decline in prices, the exports in dollar term could not go up and remained stagnant at the previous year’s level.
Advisor to Prime Minister on Commerce, Industries and Textile Abdul Razak Dawood said while addressing a press conference here flanked by Special Assistant to Prime Minister on Information Dr Firdos Ashiq Awan on Thursday.
He said: “There is a big recession in global exports which are decreased by 3 percent compared to the previous year and the prices of the commodities especially in the countries where Pakistan has a major share of exports have also declined by over 7 percent mainly due to the recent trade war between China and the US.”
He explained that the quantity wise exports of garments, knitwear, cement, bedwear, food, and foot wear increased by 29%, 16%, 13%, 10%, 11%, and 27% respectively during first 10 months of current fiscal year compared to the same period of last year.
He said export of yarn which was a low value added product had declined during the period which shows that “our direction is in the right side as we are focusing on promoting high value added products and the exports will get momentum with the passage of time”.
The Advisor said in India, Bangladesh and Turkey, the exports also declined during previous year.
On the other side, he said the imports, due to devaluation of Pak rupee had declined by $4 billion during the period which was a good sign for the country’s economy.
Abdul Razak Dawood pointed out that unless the local businessmen were not given access to the international market, the exports could not be increased adding that the government had achieved success from Indonesia and China from where it managed to get duty free access on 20 and 313 items respectively.
He said in Free Trade Agreement (FTA) phase-II with China, the government had included a condition if, due to the agreement any local industry faced loss, Pakistan had the right to suspend the agreement for maximum 180 days.
To a question, Dawood said in order to expedite the implementation of FTA-II, a Pakistani delegation would visit China on June 17 while in July this year, he himself would visit China to further communicate the process.
To another question with respect to the government’s expected decision of taking back the facility of zero rating to five export oriented sectors, the Advisor said that the decision had not yet been taken in that regard to impose duties on the five export oriented sectors.
He informed that under invoicing was a big issue in the country which was a major hindrance in the way of collecting more revenues.
“There is no doubt that government was not getting full tax from local sales of various companies, therefore the government was taking special measures to discourage such practice,” he added.