Stagnating Pakistan-Iran Relations

Somebody call the waaahmbulance for the pakis...


Pak contacts WB against Indian textile gimmicks

Mehtab Haider
ISLAMABAD — Pakistan has claimed that India is using “unfair trade methods” for marginalizing its textile exports and raised the issue with the World Bank to pressure New Delhi to refrain from doing such practices.
“Yes, we have asked the World Bank to stop India from using unfair trade methods for boosting its textile exports,” official sources told TheNation on Saturday. The government is quite worried due to declining trend in the country’s exports, which have 60 per cent contribution from the textile sector.
However, the government is further analyzing the situation for determining factors behind the decline in exports.
The sources said Pakistan is in a disadvantaged position as compared to Bangladesh, which though being in the category of Least Developed Countries, its products are cheaper than that of Pakistan. The Pakistani exports are charged 13 per cent duty in USA while Bangladesh exports are taken at zero-rated duty.
The textile industry, according to the sources, also blamed India for using ‘unfair trade methods’ for boosting its exports.
Chinese exports are banned in US and EU markets during 2005-2008 and there is no truth that Pakistan’s exports shares are getting affected due to this ban.
For the July-October 2006 period, Pakistan’s export receipts have registered 1.3 per cent increase in USD terms.
The softness in export earnings being led by the textile & clothing sector, the underlying trend is not confined to T & C exports. These exports have registered a cumulative decline of 9 per cent for July-October 2006 period, while exports receipts from non-T&C manufactures have fallen by 34 per cent over the same period.
Discussing another reason, the sources said, it is coinciding with the fall in US$ receipts from exports, remittances from expatriate Pakistanis have picked up by over 20 per cent in the same period - from already elevated levels.
The combination of falling export receipts and an unexplained jump in remittances has fuelled suspicion that exporters have been concertedly diverting export receipts into non-bank channels in order to pressure the government into granting further “relief” in the form of subsidies and exemptions.
“The fact that US customs data for the July-September 2006 period indicates a 16 per cent increase in the USD value of textile and clothing exports from Pakistan has reinforced the suspicion of an element of “manoeuvring” from the textile lobby,” said ABN Amro Bank in its latest analysis.

Re: # 72 Arjun

(....The sources said Pakistan is in a disadvantaged position as compared to Bangladesh, which though being in the category of Least Developed Countries, its products are cheaper than that of Pakistan. ...)

Are you serious? Pakistan is disadvantaged in comparison with Bangladesh...there goes our burgers&fries-from-Pakistan dream.

takeout paki...

forget IT..in the post-quota world, you can`t even hack it in the textile exports game....

Textile exports may miss Q2 target
KARACHI, Oct 21: Time is apparently running out for Pakistan’s textile exporters, who after having failed to achieve a proportionate export target of $3.83 billion in the first quarter of this fiscal year, are finding it extremely difficult to earn $4 billion plus in the next quarter -– Oct-Dec 2006.


In case of the US, a number of countries have free trade agreement (FTA) and, therefore, they get zero rating treatment on entry of their products into the American market, whereas for Pakistan the rate of duty ranges from 11 per cent to 18 per cent.“We did raise these points with a team of American negotiators at US consul general’s office in Karachi this month,” he recalled and revealed very soon Malaysia would end up with an FTA with the US. “We are clubbed with China and India in the US market,” he explained to assert his point that in China and India, the textile business enjoyed unlimited support in form of subsidies, tax concessions and reduced cost financing plus a relatively less energy cost and cheap labour.

The analysts say that Pakistani exporters are finding it difficult to respond to the challenges of international market after January 2005 following the phasing out of textile export quota regime. For more than five decades Pakistan business thrived on a captive market and a greenhouse environment. It is facing competition for the first time.

“Very soon Pakistan business landscape will be littered with dead and dying business houses,” a senior business leader predicts. He also points out that those companies that will withstand this tough period are bound to go a long way and grow.

#52 by taikonaut on December 2, 2006 1:17pm PT


Failure? or trying to diversify our services to the West.


diversify...!! HAHA...72 million $ is what bangalore alone probably exports in like 3-4 days...

bottom line: you tried your damndest to get on the IT bandwagon and while India is now doing chip design and other value added stuff, you`re stuck at 72 million/yr..mostly in call centers..

what`s diverse are paki delusions..


However Hindia can`t beat China`s $300 billion manufacturing sector. You know why?


Umm...Are you chinese?

Of all the delusions pakis have expressed over the years - the ``mega firms`` story takes the cake... :)

more laughter....who else but a chaprasi would hold india as some sort of a model when indian exports are only marginally higher than that of thailand - country of 70 mn people.?

http://www.indianexpress.com/story/17554.html

``Trade deficit balloons to $6.2 billion in Oct

Export growth rate slows to 11% against a full year target of 26%

NEW DELHI, NOV 28: India’s trade deficit witnessed more than a two-fold increase to touch $6.2 billion in October 2006 from $2.9 billion in October 2005. In September 2006 the trade deficit stood at $5.3 billion.

Releasing its provisional data on Tuesday, the government said the trade deficit for April-October, 2006 was $ 30.2 billion, 20.3% higher than the deficit of $ 25.1 billion (provisionally revised figure) during April-October, 2005....``

next chaprasi will be offering tips on how good india is in producing world class fast bowlers.

haha...check out chaprasi macaca predicting downfall of cheen even though cheen`s annual surplus is equal to india`s total foreign reserves and india`s budget deficit is around 7% vs less than 1% for cheen.

as far as pak`s farm production goes, here is a recent development:

http://www.thenews.com.pk/daily_detail.asp?id=33458

Pakistan may drive up global wheat prices

With stocks towering above 0.45m tonnes, Pak exports will be affecting international commodity exchanges

KARACHI: The world sees Pakistan instrumental in driving up international wheat prices, as it stands among only three wheat-producing countries across the globe having surplus stocks of more than half a million tonnes from last year crop.

A latest assessment made by the US Department of Agriculture suggests Pakistan along with Argentina and Ukraine would be the major player in the international commodity market to determine 2006-07 prices.

Re: # 64: The last time any one actually used the Nation as a source for economic happenings in Pakistan, they were tarred and feathered.

http://www2.goldmansachs.com/insight/case_studies/innovate_case_studies/brics.html

this is the world to come. Get used ot it.

Re: # 64: abay cab driver, no one is calling for downturn of cheen. India`s trade with cheen is only expanding. In a decades time when you are having iftar having cooked your keema samosas in Ganeshpati Ghee from Banaras and served savaein from Fat Buddha Noodle Co in Beijing think about what I said about developing institutions among sectors that drive growth. Getting paid $5 miilion a pop to send citizens to gitmo is not developing a export driven industry. although, the rate ofpopulation growth in pakistan will only drive the price down.

just to put things in perspective, thailand with a population of 70mn will export as much as india will:

http://etna.mcot.net/query.php?nid=26345

Export growth in 2006 projected at nearly 20 per cent

BANGKOK, Dec 2 (TNA) - Thailand`s exports this year are projected to grow and meet the target of 17.5 per cent with total value of US$130.37 billion, according to Commerce Minister Krirkkrai Jirapaet.

Re: # 58: faisal, 60% of US GDP is domestic spending driven not export driven. You need a balance. India`s growth 8% y/y and soon to hit 9+% going by last quarters 9.2% growth is being fueled by domestic investment not through exports. This will happen for a long time to come. so rest assured..there is not as much risk to foreign demand. What woudl happen if US hits a recurrive solw down driving demand for chinese goods down?

#59 by chaltahai on December 2, 2006 1:45pm PT

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What woudl happen if US hits a recurrive solw down driving demand for chinese goods down?

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The day US suffers a big slow down, its going to be bring down everyone else including Hindia.

Re: # 62: on what basis? Look at export exposures of the countries you are talking about. Use your own argument to defend your stand. YOU CAN``T!!!!

Re: # 59: what drives sustainable growth are institutional development of lead sectors that can drive economic growth over long stretches of time. Take China for example, it opened its economy in 1978, it was a blip on the international trade scene until the early nineties (roughly the smae amount of relevance and attention that India is getting now after 15 yrs post liberalization) Just as the special economic zones in the south Guangdong and outside of shanghai led to shifting of manufacturing form the develop[ and other asian economies, same is happening in India in the services and other industries, pharama and biotech for example.

pakistan needs to develop sustainable sectors that can drive economic growth. According to chucklehead here it is land. There is no comparative advantage in wealth allocated among landed gentry. It creates countries like Blivia and Argentina, not countries like Singapore and China or India.

Re: # 61 chaltahai sez

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pakistan needs to develop sustainable sectors that can drive economic growth. According to chucklehead here it is land. There is no comparative advantage in wealth allocated among landed gentry. It creates countries like Blivia and Argentina, not countries like Singapore and China or India.

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India and Singapore? hahahha. Bhai chortay khoob tum.

For Pak`s progress our Baboo class needs to shed their Hindi-aping, paan spitting, cigarette-smoking attitude. This is the only way to figure out our core-competencies. Our biggest issue is this commie-style tax system that sucks the whole economy dry.

But there is hope. In the last few years we have developed a couple of institutions that are totally uncharacteristic of Pakistani baboos.

With few exceptions our Highway Police is 180 opposite from the regular police and our NADRA offices are relatively streamlined and honest places. No one says they are the epitomes of modernity. Still they have set pretty good examples so far.

Our tax department and customs staff should be sacked. Then replaced by the tie wearing, key-board thumping young people of NADRA. Tax collection will gain tremendously in the new system.

We also need to focus on the other arm of taxes i.e. tax regulations.

Our rural tax system is roughly 200 years old filled with emperors called ``Patwaris``. These leaches should be removed and tax rules be streamlined. This should also encourage the Mega-farmers to become industrial setup.

This will help our Hindian neighbors see the immense wealth currently hidden below the radar due to poor tax system.

Our urban tax rules are equally bad forcing most of the business activity under ground. No declared income so no income taxes from the business or agri class.

Bad urban and rural taxes means little collection. So the government uses its big hand to impose taxes on petrol, electricity, and gas. That in turn ups the prices and huge inflation.

taikonaut,

your numbers are incorrect. india`s total export (merchandise +services) will amount to $140-150bn this year. china`s export in comparison are expected to reach $960bn. to catch up with china, india`s export growth rate will have to exceed china`s export growth rate by 10% for the next 20 years. reality however is that india is running a current account deficit unlike china which is accumalating record surpluses.

http://www.businessweek.com/ap/financialnews/D8LA6QVG1.htm

China exports expected to reach $960B

NOV. 10 7:15 A.M. ET The Commerce Ministry said Friday that China`s exports are expected to reach $960 billion this year, boosting its politically sensitive trade surplus to about $150 billion, a state news agency reported.