Our exports at the close of the year amounted to $ 14.41 billion, an increase of 17% over last years export level.
Textiles and Garment s export Textile and Garments contributed 25.2%. It is encouraging to note that five of the sub sectors namely cotton cloth, knitwear, bed wear, readymade garments and cotton yarn achieved exports in excess of US$ one billion each during 2004-2005.
Our fast growing Services sector has been a boon for the economy which now
Comprises 53.3% of our GDP.
Electronics and electrical goods
One of the product groups showing dynamic export growth during the last 20 yearsis Electronics and electrical goods.
Pakistan is now well-placed to make use of newOpportunities in these areas since a good domestic base has been set-up in the last5 years via tariff rationalization and elimination of import substitution programmes.
Nasiba Waris- 139 REASONS FOR DEFICIT IN BALANCE OF TRADE
TRADE DEFICITE The negative difference of the value of goods and services exported out of a country less the value of goods and services imported into the country
Continuing political instability in Islamabad has also weakened investor confidence in Pakistan, putting downwards pressure on the stock exchange, which recently recorded its lowest day of trading in terms of volume.
it is a matter of great concern that despite the enormous potential and attractive business opportunities in Pakistan, the potential investors did not come out with money at the desired level due to various reasons, especially the unpredictable policies and law and order situation in the country.
There exists surplus labor force in Pakistan, the quality of such a labor is relatively poor in terms of productivity. A good quality labor with technological, and managerial competencies is considered to be significant in improving the competitiveness of countries for inward FDI. But there appears to be a lack of such qualities and skills in labor force in Pakistan.
Low return on capital, low productivity of labor and high rate of bank interest, increased wastage of inputs are the other factors which have made Pakistani products more expensive than those from neighboring countries
Much of the country’s crop was smuggled to the country’s neighbour, Afghanistan, where so much farming land is dedicated to growing a $3bn poppy crop that severe food shortages caused such a brisk smuggling trade that the Pakistani army had to seal the border on occasions.
There are three important factors in Finance exports are as given below
Services Pakistan Export Finance Guarantee The Agency plans to offer a spectrum of 14 separate guarantee products and service at the pre-shipment stage, to the export, indirect export and finance communities.
14 separate guarantee services are given below
Specific Transaction Guarantees:
Whole Turnover Guarantees, Open Account Sales Only:
Export Finance Scheme (EFS): Part-I Transaction based facility Coverage to the extent of 100% of export order/LC/contract. Facility is available at both Pre & Post shipment stages to DE Facility available to IE at Pre-shipment stage only Facility available to - Direct Exporters : 180 days - Indirect Exporters: 120 days Performance required against every transaction. Part-II Performance based facility Facility is available to Direct Exporters only but not to Indirect Exporters Exporters are allowed a revolving cash credit limit equivalent to 50% of their total value of goods exported in the previous year. The exporter can avail facility for the maximum period of 180 days.
Current Mark up rate is 7.5% plus Spread of banks ,which is 1%
Mark up Rates under LTF-EOP: 7% p.a. 5% p.a. on 5 Years PIBs Over 3 and up to 7-1/2 Years 6% p.a. 4% p.a. on 3 Years PIBs Over 2 but up to 3 Years 6% p.a. 4% p.a. Weighted Avg. Yields on 12 month T-bills Up to 2 Years *Rates for Borrowers *Rates for PFIs Linked with Tenure (inclusive of grace period)
“ The Export Finance Scheme of the State Bank of Pakistan has been in operation since 1973 and has been a major source of banks’ credit to the exporters”
Lending banks/DFIs.Clean Exposure:
No Banks / DFIs shall provide unsecured / clean financing facility,
in any form, of a sum exceeding Rs 500,000/- (Rupees five hundred thousand only)
Salma Bashir - 126 CURRENT TRADE POLICY & SUGGESTIONS
Export Measures Temporary Importation for Exports Plant, machinery and equipment imported to setup a unit in DTRE scheme will be exempt from duty and taxes. Inputs in DTRE will also be allowed to be imported from India, even if these are not included in the importable items from India, or manufactured locally. Zero Rating of Exports zero rating’ to exports by refunding of indirect taxes on input cost incurred on manufacturing of merchandise, which is exported.
Ministry of Food and Agriculture may focus on evolving new varieties & increasing area under cultivation
Paddy harvesters & Paddy dryers may be provided on matching grant basis in rice growing areas. Furthermore rice farm machinery namely paddy harvesters and dryers will be importable from India through Wahga by road
Consultants of international repute would be
engaged to suggest improvements in the
development of handicrafts.
Arrangements will be made to expose master craftsmen to international designs and trends
Export of halal food products- established a halal certification board Automobile sector allow to send us$ 50,000 worth of samples to foreign buyers northern areas
buses not older than 3 years are permissible for import under the TR scheme
allow import of buses which are not more than 05 years old under the same scheme.
Secondhand / used cement bulkers- allowed but they will not be older than 10 years.
Reducing Cost of Doing Business
In order to reduce cost of raw material imports and thereby make our export products more competitive the import of Job lot & Stock lots of raw material, which attracts duty up to 5%, would now be allowed
Customs Duty on the import CNG Buses was brought from 15% to zero .
In case any Indian manufacturer of CNG buses makes a firm commitment to establish manufacturing of such buses in Pakistan, the Ministry of Commerce may provide special dispensation for import of 10 buses by road via Wahga from each possible investor as test consignments.
Stainless Steel and Cotton Yarn- import by train & also by trucks through Wahga .
Academic, Scientific and Professional Books - allowed from india