PESHAWAR
Chairman Pakistan Businesses Forum (PBF) KP Chapter, Umar Masood ur Rehman has said Europe is second most important trading partner, accounting for 14.3% of Pakistan’s total trade in 2020 and absorbing 28% of Pakistan’s total exports but KP share remain negligible.
In a statement on Tuesday, he said we should identify other export opportunities and inform investors and the public about them so that more people can take part in the value creation process.
PBF official said 367 companies located in Khyber-Pakhtunkhwa exported $763 million i.e. 2.8 percent of the country’s total exports in 2020-21 compared to 322 companies located in Peshawar (KPK) exported $565 million i.e. 2.63 percent of the total exports in 2019-20.
The data revealed that 31 companies located in others (KP) exported $57 million i.e. 0.21 percent of the country’s total exports in 2020-21 compared to 23 companies located in others (KP) exported $39 million i.e. 0.18 percent of the total exports in 2019-20.
“He suggested the European Commission and the provincial government of Khyber Pakhtunkhwa may launch the EU-Pakistan Trade and Technology Council to allow both partners to tackle challenges at the nexus of trade, trusted technology”.
As there are many other opportunities available in the supply chain of many finished products like in the untapped sector of horticulture and gems of KP which was largely ignored by the EU.
In 2020, Pakistan was the EU’s 42nd largest trading partner in goods accounting for 0.3% of EU trade. Pakistani exports to the EU are dominated by textiles and clothing, accounting for 75.2% of Pakistan’s total exports to the EU in 2020.
Pakistan’s imports from the EU are mainly machinery and transport equipment (33.5% in 2020) as well as chemicals (22.2% in 2020). From 2010 to 2020, EU-27 imports from Pakistan have almost doubled from €3,072 to €5,537 million.
The growth of imports from Pakistan has been particularly fast since the award of GSP+ (€5,515 million in 2014).
He said that textiles and clothing account for over 80% of Pakistan’s exports to the EU. While the textiles and clothing industry are the backbone of Pakistani exports, relying so heavily on one product category carries risks for Pakistan. Trade diversification would play an essential role in this respect. The granting of GSP+ preferences in 2014 should stimulate Pakistan’s efforts towards diversification.
Umar Masood further viewed that we should aim to mature our trade ties with the US and Europe beyond politics. Pakistan’s diplomatic relationships must be based on shared interests with each country. There are several examples of countries whose economic links remain intact despite political or border conflicts.
He also said the EU is a full toolbox of solutions. They have a lot of peacekeeping missions and bureaucratic exchanges which can help us.
