IDR 2018: Pakistan's Declining Manufactured Exports

Pakistan's manufacturing sector is performing poorly relative to Bangladesh and India, according to the United Nations Industrial Development Organization 2018 report. UNIDO data shows that Pakistan's per capita manufacturing value added is not only lower than its neighbors' but it's also growing more slowly since 2010.  In fact, Pakistan's manufactured exports per capita have declined in the last decade.

South Asia Manufacturing. Source: UNIDO IDR 2018


Industrial Development Report 2018:

United Nations Industrial Development Organization, also called UNIDO, is a UN agency whose charter is to "promote and accelerate inclusive and sustainable industrial development (ISID) in Member States". It publishes an annual industrial development report that is "an established source of reference on industrial development. Previous editions have been examining the driving forces of industrialization and the positive factors that can lead to social inclusiveness and environmental sustainability. They have examined crucial components of the production side of industrialization, such as capacity building, energy efficiency, employment creation and technological change, to mention just a few."

Here are key data points from IDR 2018 on selected countries, including Pakistan:

Pakistan MVA per capita 2010 $134 2015 $146

Pakistan Manufactured Exports per capita 2010 $102 2015 $94

Bangladesh MVA per capita 2010 $122 2015 $182

Bangladesh Manufactured Exports per capita 2010 $121 2015 $152

India MVA per capita 2010 $228 2015 $298

India Manufactured Exports per capita 2010 $152 2015 $186

China MVA per capita 2010 $1,432 2015 $2,048

China Manufactured Exports per capita 2010 $1,132 2015 $1,601

Pakistan's Export Performance:

The bulk of Pakistan's exports consist of low value commodities like chadar, chawal and chamra (textiles, rice and leather). These exports have declined from about 15% to about 8% of GDP since 2003. Pakistan's trade deficits are growing at an alarming rate as the imports continue to far outstrip exports. This situation is not sustainable.  What must Pakistan do to improve it? What can Pakistan do to avoid recurring balance of payments crises?  How can Pakistan diversify and grow its exports to reduce the gaping trade gap? How can Pakistan's closest ally China help? Can China invest in export oriented industries and open up its huge market for exports from Pakistan? Let's explore answers to these question. 

Exports as Percentage of GDP. Source: World Bank
East Asia's Experience:

East Asian nations have greatly benefited from major investments made by the United States and Europe in export-oriented industries and increased access to western markets over the last several decades. Asian Tigers started with textiles and then switched to manufacturing higher value added consumer electronics and high tech products. Access to North American and European markets boosted their export earnings and helped them accumulate large foreign exchange reserves that freed them from dependence on the IMF and other international financial institutions. China, too, has been a major beneficiary of these western policies. All have significantly enhanced their living standards.

Chinese Investment and Trade:

Pakistan needs similar investments in export-oriented industries and greater access to major markets. Given the end of the Cold War and changing US alliances, it seems unlikely that the United States would help Pakistan deal with the difficulties it faces today.

China sees Pakistan as a close strategic ally. It is investing heavily in the Belt and Road Initiative (BRI) which includes China-Pakistan Economic Corridor (CPEC). A recent opinion piece by Yao Jing, the Chinese Ambassador in Pakistan, published  in the state-owned China Daily, appears to suggest that China is prepared to offer such help. Here are two key excerpts from the opinion piece titled "A community of shared future with Pakistan":

1. China will actively promote investment in Pakistan. The Chinese government will firmly promote industrial cooperation, expand China's direct investment in Pakistan, and encourage Chinese enterprises to actively participate in the construction of special economic zones. Its focus of cooperation will be upgrading Pakistan's manufacturing capacity and expanding export-oriented industries.

2. China will also actively expand its imports from Pakistan. In November, China will hold the first China International Import Expo in Shanghai, where, as one of the "Chief Guest" countries, Pakistan has been invited to send a large delegation of exporters and set up exhibitions at both the national and export levels. It is hoped that Pakistan will make full use of this opportunity to promote its superior products to China. The Chinese side will also promote cooperation between the customs and quarantine authorities of both countries to facilitate the further opening-up of China's agricultural product market to Pakistan. China will, under the framework of free trade cooperation between the two countries, provide a larger market share for Pakistani goods, and strengthen cooperation and facilitate local trade between Gilgit-Baltistan and China's Xinjiang Uygur autonomous region. And China will take further visa facilitation measures to encourage more Pakistani businesspeople to visit China.

Pakistan's Role:

Pakistan needs to take the Chinese Ambassador Yao Jing's offer to increase Chinese investments and open up China's market for imports from Pakistan.  Pakistan's new government led by Prime Minister Imran Khan should take immediate steps to pursue the Chinese offer. Finance Minister Asad Umar needs to form a high-powered team of top bureaucrats and leading businessmen to develop a comprehensive plan to attract investments in export-oriented industries and diversify and grow exports to China and other countries. Pakistan must make full use of its vast network of overseas diplomatic missions to promote investment and trade. 

Summary:

Pakistan's manufacturing sector is performing poorly relative to Bangladesh and India, according to the United Nations Industrial Development Organization 2018 report. UNIDO data shows that Pakistan's per capita manufacturing value added is not only lower than its neighbors' but it's also growing more slowly since 2010.  In fact, Pakistan's manufactured exports per capita have declined in the last decade. Pakistan's exports have declined from about 15% of GDP to about 8% since 2003. The nation's trade deficits are growing at an alarming rate as the imports continue to far outstrip exports. This situation is not sustainable. Chinese Ambassador Yao Jing has offered a helping hand to increase Chinese investment and trade in Pakistan.   Pakistan's new government led by Prime Minister Imran Khan should take the Chinese Ambassador's plan seriously. Finance Minister Asad Umar needs to form a high-powered team of top bureaucrats and leading businessmen on a comprehensive plan to attract investments in export-oriented industries and diversify and grow exports to China and other countries.

Comments

Riaz Haq said…
CPEC spurs Pakistan’s industrial growth, up by 5.4% in FY18

https://dailytimes.com.pk/286581/cpec-spurs-pakistans-industrial-growth-up-by-5-4-in-fy18/

The country’s large scale manufacturing (LSM) sector has witnessed growth of 5.38 percent during the fiscal year 2017-18 (FY18) compared to the corresponding period of last year, but, below the government’s FY18 target of 6.3 percent.

LSM grew 3.13 percent in 2015-16, 3.38 percent in 2014-15, 5.39 percent in 2013-14, 4.28 percent in 2012-13 and 5.6 percent in 2016-17.

The factors, according to the central bank, which facilitated LSM growth mainly included increased capacity utilization due to ease in energy supplies; high credit off-take owing to low interest rates; output stimulus in associated industries due to widespread construction activities; and an improved business environment on the back of CPEC related projects and favorable law and order situation.


Construction allied and consumer durable industries registered a notable growth. However, sugar industry was not able to capitalize on record sugarcane production; in stark contrast to last year, when it was the main driver of LSM growth.

The Quantum Index Numbers (QIM) of large scale manufacturing industries was recorded at 147.07 points during July-June 2017-18 against 139.55 points during same period of last year, according to latest data of Pakistan Bureau of Statistics (PBS).

The State Bank of Pakistan (SBP) said industrial production has witnessed the highest growth in the current fiscal year since FY08. The performance can be traced to noteworthy contributions from construction and manufacturing activities. Public sector development program (PSDP) and CPEC related expenditure have had a spillover impact on manufacturing sub-sectors such as steel, cement and automobiles. However, the industry could not achieve the growth target set for FY18 on account of a lower increase in gross value addition (GVA) by electricity generation and gas distribution.

The highest growth of 13.24 percent was witnessed in the indices monitored by Oil Companies Advisory Committee (OCAC) followed by Ministry of Industries with 5.04 percent and the indices of Provincial Bureaus of Statistics (PBOS) with 4.4800 percent.

On month-on-month basis, the industrial output increased by 0.51 percent in June 2018 compared to June 2017 while it decreased by 8.30 per cent if compared to May 2018.


Meanwhile, the major sectors that showed growth during the said fiscal compared to same period of the previous year, included textile (0.38 percent), food beverages & tobacco (2.78 percent), coke and petroleum products (13.24 percent), pharmaceuticals (2.94 percent), non metallic mineral products (11.04 percent), automobiles (17.78 percent), iron and steel products (21.78 percent), electronics (32.43 per cent), paper and board (9.38 percent), engineering products (7.58 per cent), and rubber products (6.21 percent).

On the other hand, the industries that witnessed negative growth include f, chemicals (0.23 percent), fertilizers (9.88 percent), leather products (0.19 percent), and wood products (37.75 percent).

The provisional QIM is being computed on the basis of the latest production data of 112 items received from sources including Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production (MoIP) and Provincial Bureaus of Statistics (PBoS). OCAC provides data of 11 items, MoIP of 36 items while PBoS proved data of remaining 65 items.
Riaz Haq said…
50 Auto Factories' Production Improved With JICA Support

https://www.urdupoint.com/en/business/50-auto-factories-production-improved-with-j-425957.html

Small and Medium Enterprises Development Authority (SMEDA) has improved production systems of 50 Auto Factories with the support of Japan International Cooperation Agency (JICA).

Small and Medium Enterprises Development Authority (SMEDA) has improved production systems of 50 Auto Factories with the support of Japan International Cooperation Agency (JICA).

SMEDA Chief Executive Officer Sher Ayub disclosed this here Wednesday while commenting on second term of SMEDA-JICA joint project being run for technical support of auto parts manufacturing industry in Pakistan.

The project, he said, was being conducted in coordination with Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM).

He acknowledged services of the Provincial Chief SMEDA-Sindh Mukesh Kumar to make this project successful in close coordination with PAAPAM.

He said that Auto sector was one of the rapidly growing sectors in Pakistan. Its contribution towards the national economy in the form of technology transfer, employment and revenue generation is visible, he said and pointed out that the sector had a significant room to further improve quality, bring innovation and flexibility of manufacturing system which is being addressed with the support of JICA. He observed that Japan's technical support had helped the local auto parts manufacturers to get prepared for export market by improving quality and productivity of their products, as per world's requirements.

Earlier, at a ceremony held at PAAPAM Office, the SMEDA (Sindh) Provincial Chief Mukesh Kumar gave a briefing on the activities to be conducted under second term of SMEDA-JICA joint project for technical support of Auto sector in the country.

Yoshihisa Onoe - senior representative of JICA Pakistan Office, Hiroshi KANEKI - Chief of JICA Technical Team, Hiroshi SASAKI-Deputy Chief of JICA Team, Ikuta, Ishitaki, Sato (JICA Experts) and Muhammad Ashraf Sheikh, Senior Vice Chairman PAAPAM also spoke on this occasion.

Yoshihisa Onoe-the Senior Representative of JICA, in his address, assured to continue the technical support for Pakistan's industry to compete in the world market in terms of technical know-how and the modern manufacturing techniques.

He acknowledged that JICA's collaboration with SMEDA and PAAPAM had proved to be very useful for the local auto parts' manufacturing industry in Pakistan.

He was glad to note that productivity of the sector had increased to an optimal level, whereas, the rejection rates to be witnessed in the manufacturing processes had reduced to the lowest possible level. He said that the SMEs, engaged in auto parts manufacturing, had a great potential to compete the world market and assured to extend fullest technical support of JICA to impart the best practices being exercised in auto sector of the developed world.

Muhammad Ashraf Sheikh, Senior Vice Chairman (PAAPAM) appreciated SMEDA initiatives to get JICA's technical cooperation for auto parts industry.

He said that PAAPAM members had greatly availed of the assistance to increase their productivity and reduce rejection rates in their manufacturing processes. He urged SMEDA and JICA to continue the program even after completion of the set period.
Riaz Haq said…
Livestock revolution enabled Pakistan to significantly raise agriculture productivity and rural incomes in 1980s. Economic activity in dairy, meat and poultry sectors now accounts for just over 50% of the nation's total agricultural output. The result is that per capita value added to agriculture in Pakistan is almost twice as much as that in Bangladesh and India.

https://www.riazhaq.com/2013/11/pakistan-leads-south-asia-in.html

http://sawtee.org/presentations/27-28-dec-2015-2.pdf
Riaz Haq said…
#Pakistan's #PTI government led by #ImranKhan plans to review or renegotiate #CPEC agreements with #China. #Chinese FM Wang Yi visiting #Islamabad indicates #Beijing open renegotiating its 2006 trade deal with Pakistan. https://www.ft.com/content/d4a3e7f8-b282-11e8-99ca-68cf89602132

Pakistani ministers and advisers say the country’s new government will review BRI investments and renegotiate a trade agreement signed more than a decade ago that it says unfairly benefits Chinese companies.

The projects concerned are part of the $62bn China-Pakistan Economic Corridor plan — by far the largest and most ambitious part of the BRI, which seeks to connect Asia and Europe along the ancient silk road.

They include a huge expansion of the Gwadar port on Pakistan’s south coast, as well as road and rail links and $30bn worth of power plants.

“The previous government did a bad job negotiating with China on CPEC — they didn’t do their homework correctly and didn’t negotiate correctly so they gave away a lot,” Abdul Razak Dawood, the Pakistani member of cabinet responsible for commerce, textiles, industry and investment, told the Financial Times.

“Chinese companies received tax breaks, many breaks and have an undue advantage in Pakistan; this is one of the things we’re looking at because it’s not fair that Pakistan companies should be disadvantaged,” he said.

Wang Yi, Chinese foreign minister, who visited Islamabad at the weekend, indicated that Beijing could be open to renegotiating its 2006 trade deal with Pakistan. “CPEC has not inflicted a debt burden on Pakistan,” he told reporters. “When these projects get completed and enter into operation, they will unleash huge economic benefits.”

But Islamabad's second thoughts follow other recent setbacks for BRI, which is seen by many as a bid by China’s President Xi Jinping to extend Beijing’s influence throughout the world. Governments in Malaysia, Sri Lanka, Myanmar and elsewhere have already expressed reservations over the onerous terms of Chinese BRI lending and investment.

Imran Khan, the former cricket star who was elected Pakistan’s prime minister last month, has established a nine-member committee to evaluate CPEC projects. It is scheduled to meet for the first time this week and will “think through CPEC — all of the benefits and the liabilities”, said Mr Dawood, who sits on the new committee.

“I think we should put everything on hold for a year so we can get our act together,” he added. “Perhaps we can stretch CPEC out over another five years or so.”

Several other officials and advisers to the Khan government concurred that extending the terms of CPEC loans and spreading projects out over a longer timeframe was the preferred option, rather than outright cancellation.

Pakistan is in the middle of a financial crisis and must decide in the coming weeks whether to turn to the IMF for its 13th bailout in three decades, as pressure on the Pakistani rupee makes the burden of servicing foreign currency debt more onerous.

Asad Umar, Pakistan’s new finance minister, told the FT he was evaluating a plan that would allow Islamabad to avoid an IMF programme, which several people close to the government say would i nvolve new loans from China and perhaps also from Saudi Arabia.

Mr Umar and Mr Dawood both said Pakistan would be careful not to offend Beijing even as it takes a closer look at CPEC agreements signed over the past five years. Mr Khan was elected on a platform of anti-corruption and transparency and has pledged to publish details of existing CPEC contracts.

“We don’t intend to handle this process like Mahathir,” Mr Umar said, referring to the newly elected nonagenarian Malaysian prime minister who has warned about the risk of Chinese “neo-colonialism” Malaysia has cancelled three China-backed pipeline projects and put a showpiece BRI rail link under review.
Riaz Haq said…
#French #auto maker to launch five new models in #Pakistan - Renault has acquired 54 acres of land in the city of #Faisalabad and it is expected to invest 140 million U.S. dollars more in the venture. http://www.xinhuanet.com/english/2018-09/11/c_137459070.htm#0-twi-1-63766-7250227817ecdff034dc9540e6c76667

Renault, which is one of the top international car manufacturing companies, has partnered with the largest U.A.E.-based entity Al-Futtaim Group. The joint venture is set to bring the latest technology to their manufacturing plant in Pakistan. The company will initially launch five variants to make a strong start in the Pakistani auto sector.

The Al-Futtaim Group has already started establishing its offices in Pakistan. The two companies will join hands to establish their showrooms and other offices in the country by 2019 whereas the French auto giant's variants are likely to get an official launch by June 2020.

The company's auto manufacturing plant in Faisalabad will have the production capacity of 50,000 vehicles per year. It will conduct sales through the local dealerships.

The arrival of five new variants by the top automaker will provide Pakistani buyers with additional options to choose from.

The advent of Renault in Pakistan is likely to hurt the market monopoly of Japanese automakers like Toyota, Suzuki, and Honda. It would also inspire the other automakers in the Pakistani auto market to bring more investment in Pakistan.
Riaz Haq said…
#Pakistan eyes boosting medicine exports. #Pharmaceutical #exports are currently earning $230 million with potential to expand up to $2 billion. The industry is the 6th largest sector contributing to the overall exports of Pakistan. https://tribune.com.pk/story/1813190/1-pakistan-eyes-boosting-medicine-exports-2b/

The Drug Regulatory Authority of Pakistan (Drap) has assured the pharma industry that in order to further facilitate exports, the authority will establish a separate desk where all concerns of exporters regarding issuance of necessary documentation will be addressed.

Pharma exports are currently earning $230 million with potential to expand up to $2billion.
A meeting was held on Thursday under the chairmanship of Federal Minister for Health Services Aamir Mehmood Kiani with pharmaceutical exporters. The purpose of this meeting was to discuss mechanisms to boost volume of pharmaceutical and alternative medicine exports.

The federal minister in response to concerns of the pharma industry, being represented by the Pakistan Pharmaceutical Manufacturing Association and top 20 pharma exporters of Pakistan, emphasised on the need of harmonisation and facilitation of pharma export by engaging customs and the Trade and Development Authority of Pakistan (TDAP) for resolution of their grievances.

He said the sector has huge potential and needs harvesting to benefit the country by earning money abroad through improved exports of pharmaceutical and alternative medicine. It was also apprised the industry could expand its volume of exports as the 6th largest sector contributing to the overall exports of Pakistan.

Kiani advised stakeholders to submit a working paper on how export volume can be improved. Following which, CEO DRAP, Dr Sheikh Akhter Hussain apprised the federal minister that DRAP has already taken initiative to facilitate local manufacturers who are exporting to other countries.
Riaz Haq said…
#Pakistan's #cement industry earned foreign exchange revenue of US$27.57m by #export of 617,745t of cement during the month of August 2018, up from US$20.96m in prior month.
https://www.cemnet.com/News/story/164961/pakistan-cement-exports-rise-during-july-and-august.html#.W62Q7UcKoTI.twitter

According to Federal Bureau of Statistics, Pakistan's cement industry earned foreign exchange revenue of US$27.57m by exporting 617,745t of cement during the month of August 2018, compared to US$20.96m from exporting 475,134t of cement in previous month. This equated to a growth of 31.5 per cent and 30 per cent in terms of value and quantity, respectively MoM.

When compared with the figure of August 2017, earning of US$22.41m from 442,945t of cement – it translates to a YoY growth of 23 per cent in foreign currency earnings and 39.5 per cent in quantity.

On a cumulative basis, export revenue during July-August 2018 surged by eight per cent to US$48.53m with exports of 1.09Mt of cement and US$44.93m from exports of 871,434t in July-August 2017. The growth in Pakistan rupees rose by 27.1 per cent to PKR6bn during this period.

Data from the All Pakistan Cement Manufacturers Association (APCMA) recorded that cement exports from Pakistan to Afghanistan and India fell by 34 per cent and 22 per cent to 278,253t and 164,552t, respectively during first two months of the current financial year. However, cement exports to rest of the world rose by 149 per cent to about 633,385t during this period.
Riaz Haq said…
#Japan's Multi-national #Apparel Brand Uniqlo to Outsource #Garments to #Pakistan. Three #Pakistani garment #manufacturing companies one each in #Faisalabad, #Karachi and #Lahore have been selected. #RMG #textiles #Exports https://www.researchsnipers.com/japanese-apparel-brand-uniqlo-to-outsource-garments-to-pakistan/ via @researchsnipers

One of the most famous apparels brand in the world, Uniqlo is planning to outsource textile garments to Pakistan. Uniqlo will outsource for its 3000 branches worldwide from three Pakistani firms.


The subsidiary of Japanese retail holding company Fast Retailing Inc, Uniqlo Inc has collaborated with three local Pakistan companies aiming to boost the textile exports of the country.

Also read: Pakistan Textile Exports Increased by 8 percent reaches $8.8 billion
Initially, Uniqlo selected five textile companies in Lahore, Faisalabad, and Karachi. Uniqlo representatives were sent to all the companies to assess them and analyze their potential.

An official said, “The initial visit of the Uniqlo team has been successful, which is a big breakthrough.” Three companies were selected by Uniqlo for a joint venture.

Adding, “They still requested for some more companies for shirt fabric and others for circular cutting and sewing.”

For the fiscal year 2017-18, the textile exports of Pakistan increased by almost 9% to $13.53 billion. The textile exports account for almost 60% of total Pakistan’s exports. But compared to the last decade the textile export share of Pakistan in the world market has gone down from 2.2% to 1.7%.

The world’s biggest clothes retailer company Spanish Inditex Group opened its branch office in Pakistan in February. The aim was to double its imports from Pakistan. Other important foreign buying companies in Pakistan include Walmart Global Procurement, Li and Fung Pakistan, JC Penny and others.

Uniqlo is planning to make another trip to Pakistan by end of the month to finalize the deal with the three Pakistani companies.

Uniqlo is a big name in Japan known for providing quality products at affordable rates. The official said, “Therefore, any significant move by Uniqlo into Pakistan for investment and procurement will generate a ripple effect… it will boost textile export. From its factories, Uniqlo supplies apparels to its more than 3,000 sales outlets all across the world.”
Riaz Haq said…
Joint venture: #Pakistan, #China firms to build $200m glass #manufacturing complex for production of premium, #export-quality #glass products in special economic zone. https://tribune.com.pk/story/1834085/2-joint-venture-pakistan-china-firms-build-200m-glass-manufacturing-complex/

Deli China and JW SEZ Group have joined hands for establishing a $200 million modern glass manufacturing complex in Pakistan for the production of premium, export-quality glass products.

In this regard, the groundbreaking ceremony was held at the Prime Minister’s Office where prominent businessmen, government officials and a Chinese delegation were present.

Commenting on the initiative, Prime Minister Imran Khan said initiatives like ‘Make in Pakistan’ were immensely important for the economic development of the country.
“We need to promote such initiatives and the government will fully support such projects which are aimed at producing jobs and boosting the economy,” he said. “This investment is an indication of foreign investors’ confidence in the market of Pakistan.”

Pakistan, China may sign deal for investment in agriculture

The two sides have established Deli-JW Glassware Company Limited for the project. Pak-China Investment Company is facilitating Chinese investment in Pakistan and is also assisting in financing the project.

The project will utilise natural resources in Pakistan and use latest technology to convert into glassware, float glass and other kinds of glass products.

The project will be set up in the Industrial City M-3, Faisalabad whereas the unit for the processing of key raw material will be set up in Risalpur, Khyber-Pakhtunkhwa.

Pakistan needs to improve competitiveness to attract FDI

The main glass manufacturing complex will comprise glassware manufacturing units, float glass units and other value-added glass products. The groundbreaking for phase-I of the project was held on Thursday and it will start production by the end of 2019.
Riaz Haq said…
#Pakistan agrees to sell #JF17 #aircraft to #Nigeria Air Force. #Nigerian Air Chief Air Marshal Sadique Abubakar called for closer coordination to fast-track the process for the acquisition of the JF-17 multirole fighter aircraft from Pakistan. https://www.nigerianews.net/naf-partners-with-pakistern-to-purchase-equipment/

The Islamic Republic of Pakistan has promised to strengthen its strategic partnership with the Nigerian Air Force (NAF) in equipment and spares acquisition to further enhance professionalism.

A statement by the NAF Spokesman, Air Commodore Ibikunle Daramola, said the Pakistan High Commissioner to Nigeria, retired Maj.-Gen. Waqar Kingravi, made the pledge when he visited the Chief of Air Staff (CAS), Air Marshal Sadique Abubakar on Friday in Abuja.

NIGERIA NEWS gathered that Kingravi said Pakistan would also partner with the NAF on research and development, training and other relevant areas to further enhance professionalism.

He said he was at NAF Headquaters to assure the CAS of the commitment of the Pakistan Government to strengthening the existing cordial relationship between Nigeria and Pakistan.

The commissioner said the relations between the two counties had spanned several decades and yielded several mutually beneficial military collaborations.

Kingravi noted that having once headed the Army Aviation Corp of the Pakistan Army, he was familiar with peculiar requirements of air operations.



He added that he would pay particular attention to ensure that the ties between the air forces of the two countries were taken to even greater heights.

Kingravi also commiserated with the NAF on the tragic air mishap that occurred on Sept. 28, which led to the death of Sqn.Ldr. Bello Baba-Ari.

In a remark, Abubakar said that the relationship between the Pakistan Air Force (PAF) and NAF was extremely cordial and had continued to grow over the past few years.

He noted that the story of the successes recorded in the counter insurgency operations in the North–East, could not be written without mentioning the support rendered by the Pakistan government.

Abubakar recounted several occasions when the PAF had gone beyond the usual to assist the NAF.

He assured Kingravi that the NAF would continue to provide the necessary support and cooperation to enable him succeed.

The CAS called for closer coordination in order to fast-track the process for the acquisition of the JF-17 multirole fighter aircraft from Pakistan.

He also appealed to the High Commissioner to liaise with PAF to develop a special programme for the conduct of basic fighter training for NAF pilots.
Riaz Haq said…
Despite dip in #textile sector, knitted #garment #exports soar 16%. #Pakistan’s overall textile exports were recorded at $1.13 billion in October 2018, down 0.12% compared with $1.132 billion in the same month in 2017. https://tribune.com.pk/story/1849520/2-despite-dip-textile-sector-knitted-garment-exports-soar-16/

Despite a slight dip in overall textile exports, the knitwear garment sector has maintained a steady pace of growth in its shipments and led the sector with an increase of 16.13% in its exports for October 2018.

Pakistan’s overall textile exports were recorded at $1.13 billion in October, down 0.12% compared with $1.132 billion in the same month last year.

However, the knitwear garment sector stood on top with the highest exports in the textile chain as well as in total national exports with a growth of 16% compared with October 2017.

Knitwear garment exports grew 10.41% in July-October 2018 against the corresponding period of previous year.

With cut in input cost, textile sector vows to double exports

“Knitted garments have a great potential for expansion,” commented Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Central Chairman Muhammad Jawed Bilwani.

“The knitwear garment sector can achieve new milestones and its export can be enhanced by 25% every year, provided the government gives serious consideration to the proposals sought from the sector,” he said.

The sector alone earned $2.719 billion for the country in fiscal year 2017-18, which included knitted products like hoodies, shirts, t-shirts, jerseys, pullovers, trousers, jackets, etc. The sector has ranked high in the textile group over the past three years.

Textile exports drop 16% after rebate reduction

Bilwani termed it appreciable that the government was giving priority to five zero-rated export sectors – textile (including jute), carpet, leather, sports and surgical goods – and was also prioritising the export industry for the provision of uninterrupted gas supply with special tariffs, which was a longstanding demand of the PHMA. He was of the view that if the government considered the exporters’ proposals and resolved all their problems and issues, a breakthrough in exports could be easily achieved.

He called exports the lifeline that would support and strengthen the national economy. He also demanded that the government consider and set separate electricity tariffs for the five zero-rated industries and introduce uniform tariffs for water consumption as well. Currently, water tariffs for the industries in Karachi were the highest when compared with other regions and provinces.

Meanwhile, the PHMA has written a letter to the finance minister, requesting him to register all export-oriented textile manufacturers as zero-rated industries so that they could avail themselves of the facilities. “Many small and medium export-oriented industries are not registered as zero-rated in utility bills due to cumbersome tax payment procedures as they first pay sales tax and then apply for tax refund,” he said.
Riaz Haq said…
#Pakistan #food #exports up 16.9%. In Q1 of FY 2018-19, foodstuff exports from Pakistan grew by 16.93% as compared to the corresponding period of last year. These exports were recorded at $885.8 million as against $740.5 million the year before http://www.freshplaza.com/article/9035122/export-of-pakistan-food-commodities-up-percent/#.W_IX8oVdSKI.twitter

On month-to-month basis, the exports increased by 31.25 percent in September 2018 as compared to the same month of last year.

During the period from July to September 2018, exports of fruit and vegetables increased by 49.34 percent and 19.17 percent respectively. In first quarter, 130,747 tons of fruit worth $101.9 million were exported as compared to exports of 83,073 tons (at $68.2 million) in the same period last year.

During the period under review, Pakistan also earned $16.1 million by exporting about 4,289 tons of spices, recorded at 3,558 tons and $13.4 million of same period of last year, registering an increase of 21.82 percent.

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