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Pakistan's share in global trade drops
Publication Date : 19-10-2012
Pakistan’s share in global trade fell to 0.14 per cent in 2011 from 0.21 per cent in 1999 despite claims of the commerce ministry that exports to the world market increased manifold during the period.
In absolute terms, Pakistan lost its market share by one third, whereas India has doubled its market share during the last 12 years, official data available with Dawn reveals.
In 1999, India’s share in global trade was 0.67 per cent, which scaled up to 1.28 per cent in 2011 despite global recession. Even Bangladesh’s global market share, which was 0.06 per cent in 1999, has now doubled and reached to 0.14 per cent — equivalent to Pakistan’s share.
In South Asia, experts say Bangladesh will soon clinch the title of the second biggest economy after India. The title entertained Pakistan for years, but with the tremendous increase in the exports, Bangladesh is pacing fast to replace the former.
Pakistan is the only country which has a stagnant global market share despite the fact the government has taken a range of measures for liberalising its imports regime as compared to its neighbouring countries.
Pakistan’s exports fell to US$23.64 billion in 2011-12 from $24.82 billion in 2010-11, showing a decline of 4.75 per cent. Contrary to this, world trade expanded by five per cent in 2011 compared to 13.8 per cent growth in 2010.
The data reveals that Pakistan exports to Asian countries slightly fell to $11.709 billion in 2010-11 from $11.556 billion in 2011-12, showing a decline of 1.3 per cent. However, the share of Asian countries in Pakistan’s exports stood around 47 per cent.
Similarly, Pakistan’s exports to Europe also fell to $5.957 billion in 2011-12 from $6.537 billion in 2010-11, showing a decline of 8.87 per cent. After Asia, Europe has around 26 per cent share in Pakistan’s total exports proceeds.
The third biggest market for Pakistan’s export is American region, where Pakistan’s exports declined to $4.227 billion in 2011-12 from $4.755 billion in 2010-11, reflecting a decline of 11 per cent. The American region has approximately 19 per cent share in Pakistan’s exports market.
After striking a free trade agreement with China, Pakistan’s imports from China reached to $6.61 billion in 2011-12 from $4.41 billion in 2009-10, showing an increase of 49.9 per cent.
An official said that after FTA with China, China has emerged as a major import source for Pakistan for almost all goods — raw materials, industrial goods or consumer items. While Pakistan’s exported only $2.08 billion worth goods to China in 2011-12 as against $1.15 billion in 2009-10.
Contrary to this, Afghanistan has emerged the leading export market for Pakistan where Pakistan’s exports increased to $2.16 billion in 2011-12 as against $1.57 billion in 2009-10, showing an increase of 38 per cent.
Pakistan has no free trade agreement with Afghanistan, but exports increased manifold in the past few years negating the argument that free trade agreement increase the flows of exports.