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ISLAMABAD: Minister for Commerce, Khurram Dastgir Khan on Monday said 21 percent increase has been witnessed in Pakistani exports to the European Union during last year.
Replying during Question Hour the National Assembly, the Minister said the import bill during July-March 2014-15 was US$ 34 billion and trade deficit during said period was USS 16.1 billion.
He pointed out the reasons for the decline of exports during period were decrease in international prices of commodities.
He said that there has been a global trend of decrease in prices of cotton and rice as these commodities had seminal importance in Pakistan's exports and the decrease in prices has adversely affected exports. Khurram Dastgir said that the second reason was increase in cost of production while the prices of agricultural commodities had declined.
The cost of production in Pakistan had increased due to increased energy and other input costs, he added.
He said that depreciation of US Dollar and Euro against Pakistani rupee was the third reason. The Rupee appreciated during the period Jul-Jan of the current financial year as compared to the corresponding period of previous year, which made Pakistan's exports less competitive, he added.
It further affected competitiveness of Pakistan's exports in the Euro zone, thus offsetting a part of advantage of GSP Plus.
The last reason was lack of research and development that has traditionally been a low priority both in the public and private sectors, he said.
For instance, there is near absence of development of new high yielding varieties of cotton and rice, he added.
To another question, the minister said that under the multi-lateral trading arrangement of World Trade Organization (WTO), import substitution policies erodes the competitiveness, therefore, Pakistan did not follow any import substitution policy for last two decades. He said that Pakistan trade policies were geared toward export enhancement and creating a decent trade balance.
Copyright APP (Associated Press of Pakistan), 2015
Pakistan exports to EU increase by 21pc: Khurram
Replying during Question Hour the National Assembly, the Minister said the import bill during July-March 2014-15 was US$ 34 billion and trade deficit during said period was USS 16.1 billion.
He pointed out the reasons for the decline of exports during period were decrease in international prices of commodities.
He said that there has been a global trend of decrease in prices of cotton and rice as these commodities had seminal importance in Pakistan's exports and the decrease in prices has adversely affected exports. Khurram Dastgir said that the second reason was increase in cost of production while the prices of agricultural commodities had declined.
The cost of production in Pakistan had increased due to increased energy and other input costs, he added.
He said that depreciation of US Dollar and Euro against Pakistani rupee was the third reason. The Rupee appreciated during the period Jul-Jan of the current financial year as compared to the corresponding period of previous year, which made Pakistan's exports less competitive, he added.
It further affected competitiveness of Pakistan's exports in the Euro zone, thus offsetting a part of advantage of GSP Plus.
The last reason was lack of research and development that has traditionally been a low priority both in the public and private sectors, he said.
For instance, there is near absence of development of new high yielding varieties of cotton and rice, he added.
To another question, the minister said that under the multi-lateral trading arrangement of World Trade Organization (WTO), import substitution policies erodes the competitiveness, therefore, Pakistan did not follow any import substitution policy for last two decades. He said that Pakistan trade policies were geared toward export enhancement and creating a decent trade balance.
Copyright APP (Associated Press of Pakistan), 2015
Pakistan exports to EU increase by 21pc: Khurram
