“The target set for STPF 2015-18 is $38 billion. Data of 10 months shows that only $19.3 billion worth of exports have been recorded,” an FPCCI official said requesting anonymity.
“On a monthly basis, less than $2 billion of exports are recorded. So, if the same trend continues for another two months, then crossing $25-billion barrier would be an achievement,” the official added.
Pakistan has been facing immense pressure as foreign exchange reserves continue to fall amid widening trade and current account deficits.
The FPCCI report sheds light on export-oriented sectors including textile, which has the largest share at 61% in Pakistan’s exports. It also says Pakistan has set an export target in textiles far below its competitors.
Bangladesh has set a target to achieve textile exports worth $60 billion, while India’s increase alone is set at $30 billion.
The report also identifies various problems being faced by the textile sector including high cost of doing business, multiple taxes and surcharges.
“Low production of cotton bales, limited implementation of government announced support in STPF and Textile Package, uncompetitive utility and raw materials to the textile sector are major reasons for failing to achieve export targets,” the official added.