Lahore - The exports of the country are falling day by day since 2012-13, reducing by 11.26% from $24.802 billion in 2012-13 to $22.009 billion in 2015-16 against the target of $35 billion exports by 2018. The very important question in this regard is as to who is responsible for this decline. The experts say the biggest responsibility goes to the Trade Development Authority of Pakistan (TDAP), which has spent more than Rs 4 billion to organize around 400 international trade exhibitions in different parts of the world in the last four years and but failed to increase the country’s exports. During 2012-13, the Ministry of commerce sanctioned Rs 1 billion for TDAP to arrange trade tours. In this year, TDAP participated in 87 exhibitions in Europe, China, Asia and Middle East, America and Africa. Resultantly, country’s exports were recorded at $ 24.802 billion in this year. In the fiscal year 2013-14, the Ministry approved Rs 1 billion for TDAP which arranged participation of Pak delegations in 92 exhibitions in five different countries, leading to raise in exports to $ 25.078 billion. During the fiscal year 2014-15, TDAP participated in 92 International trade exhibitions and spent the entire allocated budget amounting to Rs 1 billion but in spite of a remarkable surge in export trends, Pakistani exports dipped to $ 24.089 billion. During 2015-16, the Ministry of commerce earmarked Rs 1 billion for trade promotion. The organization participated in 116 exhibitions in different parts of the world but exports plunged to $ 22 billion this year.
According to reports, Senate standing committee on commerce has also expressed serious reservations on the performance of TDAP.
Mr. Kashif Anwar, Former vice President LCCI and former member Tax reforms committee FBR was of the view that the exports have declined while imports have increased quantitatively. One of the important reasons of quantitative increase in imports is the fall of commodity prices in international market. He does not blame the TDAP in this regard. There are several reasons behind the fall of exports including exporters unawareness of the international market demand, packaging, presentation and price of our goods, lack of value added goods, high input cost of our raw material, multiple taxes and duties on import and production, non availability of un-interrupted electricity and gas.
The rates and number of taxes are increasing day by day as they are imposed to meet revenue targets instead of keeping in view of economic growth. In this situation how a small department of TDAP can increase exports. Secondly, our products are not compatible in international markets. What actions have been taken to curb the menace of smuggling in order to boost our manufacturing. In this scenario, how the export can be increased.
We have to resolve the issues collectively. Is TDAP responsible for the 35% less cultivation of Cotton and other crops, he asked. What about the corruption charges and investigations against the previous heads of this organization, he questioned. Is there any financial or other charges against the serving head, no, not, he explained. The policies should be developed by the mutual consultation of stakeholders of related sectors to enhance trade and remove the complications and hurdles in their way.
