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Trade Development Authority of Pakistan

Presentation by Mir Nasir Abbas, DG

Marketing Division (Europe & Asia)

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Trade Development Authority of Pakistan

The Trade Development Authority of Pakistan (TDAP), formerly Export Promotion Bureau (EPB), is Pakistan’s Trade Promotion Organization and is responsible for trade development and exports promotion of Pakistan.

TDAP has its head office in Karachi and a network of regional and sub-regional offices spread all over the country.

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Main Functions

Product Development - Developing export potential of increasing number of products to broaden the export base of

Pakistan Marketing

- Exhibitions – International + Local + Single Country + Expo Pakistan

- Delegations – Outgoing + Incoming

Information – Website + Publications + Seminars + Export Bulletin Policy Input – Trade Policy Support to Ministry of Commerce Facilitation – Removing policy and infrastructure obstacles Regulatory – GSP + Contract Registration Publicity – Media Projection + Advertisements Support Services – HR + Financial + General Administration

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Office Locations

Head Office: Karachi Regional Offices: Islamabad, Lahore, Quetta,

Peshawar Sub Regional Offices:

Sind: Hyderabad and Sukkur Punjab: Faisalabad, Gujranwala, Sialkot and

Multan NWFP: Swat and Abottabad AJK: Mirpur

Total 14 offices in the country

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Exhibitions: Number 102Region-wise Far East Asia 20

North America 12Europe 37South America 4CIS / Russia 7 SAARC 6 Middle East 9Africa 7

Sector-wise Textile 16Other Core 40 (Rice, Leather & Leather

Products, Sports goods, Carpets & Wools, Surgical Instruments, Petroleum products)

Developmental 26 (Fisheries, Poultry, Fruits/Vegetable & Wheat, IT

Software & Services, Marble & Granite, Gem & Jewelry, Engineering goods, Chemicals, Healthcare, Services)

All other 20

Delegations: Number 14 (Outgoing)

Single Country: Sri Lanka 11-13 Jan., 2008 – 92 Exhibitors India 20-23 Feb., 2009 (Preparations being made)

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Expo Pakistan: October 27-30, 2008 – 408 Exhibitors + 400 foreign buyers

October 2009

Publications: Products Brochures + Product posters + Informative Booklets

Information: - Seminars on FTAs – Malaysia + China + Sri Lanka- Training Workshops: Clinical Research

Management - Dates Processing

- EU Fashion Cycle- Women Entrepreneurs - Export Potential for Germany

Infrastructure: - Own and manage Karachi Expo Centre- Construction of Lahore Expo Center

Contd… Major Activities 2007-08

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Balance of Trade (Since 2002)

P akis tan's Imports & E xports T rends

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1980-85 1986-90 1991-95 1996-01 F Y 02 F Y 03 F Y 04 F Y 05 F Y 06 F Y 07 F Y 08

E xports

Imports

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The first quarter of current fiscal year (2008-09) shows that imports have continued to remain thrice the volume of exports – necessiating further measures for better import management.

1st Qtr. (Jul.-Sept. 2008) Trade figures reveal: Exports + 22.2%

(Over last year) Imports + 43.4%

Trade gap + 84.3% Needed:

(a) Reducing import bill by better Import Management - $6-7 b can be reduced from import bill without affecting economic security issues.

(b) Increasing exports by developing by new products + new markets (through New Export Strategy explained in subsequent pages)

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New Export Strategy (NES)

(a) New Products & Services with greatest export potential identified:

- Agro food: Developing new value added products by bringing in Investment + Technology + Skills in basic agro - food products.

- Minerals: Add value to minerals (Investment + Technology + Skills)

- Human Services: Identify, develop and promote services like IT + banking + construction + Insurance + clinical / medical + consultancies

etc.

Besides these, TDAP will continue to increase the exports of traditional exports of Pakistan Textile, Clothing, Leather, Carpets, Surgical goods, Sports goods etc.

(b) Markets:

Low demand in traditional markets of US and EU. Hence TDA’s increased focus on increasing market share of Pakistan’s exports in new Asian markets especially Russia, China, India and others.

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Contd… New Export Strategy (NES)

- To carry forward this mission, successfully implement NES, - Re-organization of TDA; its principal features are:A. Products Divisions to develop export potential of Pakistani products through four

products divisions

4 Product Divisions1) Agro-food2) Textiles3) Minerals4) Engg.

- 1 Services Division : All exportable human services- 1 Investment Division : Promote Investment + technology in export

oriented industries

B. Marketing Divisions : to develop strategy for increasing market share by better understanding of major markets.

- 1 Asia Division : Market analysis + Business practices + Competitor analysis

- 1 Europe Division : Market analysis + Business practices + Competitor analysis

- 1 America/Africa : Market analysis + Business practices + Competitor analysis Division

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Chief Executive

Secretary

Director General Services

Director General Minerals & Engineering

Director General Agro Food/ Live Stock & Fisheries

Director General Asia Pacific

Director General Americac & Africa

Regional Offices

II. Markets

Director General Europe

Director General Europe

Director General Punjab

Regional Offices

Director General N.W.F.P

Director Balochistan

I. Product & Services

Director General Textiles

III. Support Services

Director General Facilitation (Investment Trade Development , Dispute resolution + domestic Commerce

Director General (Finance + Admn + HR)

New Structure of TDAP

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Product Divisions to identify new products and develop projects enhancing export potential through skill development.

Following Product Development Projects in hand:

- Institute of Marble Technology (Karachi + Peshawar)

- Mango Processing Institute (Nawabshah + Multan)

- Agro food technology Institute (Lahore)

- Dates Processing Institute (Khairpur)

- Establishment of Carpet Institute (Quetta)

- Export Development and Marketing Institute (Including Design & Packaging Institutes)

- Fashion Design Institute (Karachi)

Contd… New Export Strategy (NES)

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Cont… New Export Strategy (NES)

- Expo Center (Faisalabad and Multan)

- Institute of Leather Technology (Lahore)

- Completion of Carpet Institute (Lahore)

- Expansion and up gradation of Gems & Gemological

Institute of Pakistan (Peshawar)

- SME Cluster Development Programme (Sialkot)

- Pakistan Packaging Institute (Karachi)

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Pakistan’s Export Strategy

Based on an evaluation of the world demand of goods and services, the Strategy aims to prioritize those where Pakistan has or can achieve a competitive edge, sourced from within or outside Pakistan and facilitate the achievement of the desired levels of profitable exports via a 'demand led' strategy, as opposed to the previous 'supply led' efforts. A 7-point strategy was developed.

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Export Strategy

The 7-point strategy is as follows:

Enhance World Market Value addition Export Diversification Geographic Expansion Women Entrepreneurship Traditional partner Countries Leverage International Trade

Blocks / Agreements

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1. Enhance World Market:

Enhance world market shares of the Core Product Categories via

1.1 Increased penetration of our best performing Core Product Categories in the top 10 respective countries.

1.2 Selectively increase the penetration of the Core Product Categories in the next top 10 countries.

Core Categories Other Core Categories Textile & Garments Rice Raw Cotton Yarn (all types) Leather & Leather products Fabrics Sports goods Garments Carpets & Wools Made up(excluding towels) Surgical instruments Towels Petroleum products Art silk & synthetic textiles

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Core Product (Textile):

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Other Core Product:

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Pursue enhancement of manufacturing and marketing capabilities and efficiencies with a view to achieve value addition and increased competitive strength for our Core Product Categories.

2. Value addition:

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3. Export Diversification:

Fisheries Fruit & Vegetables Marble & Granite. Engineering goods. Poultry I.T- Software Gems & Jewelry Chemicals Cement

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4: Geographic Expansion:

Africa Eastern Europe Oceania

(Australia/New Zealand)

South America Central Asian

Republics

Pursue in the less explored Geography, exports of our Core Products Categories and Services and any other, but significant opportunities. The geographic areas identified are

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5: Women Entrepreneurship

To energize the Women Entrepreneurship in support of developing and realizing Pakistan's export capabilities and potential, and enhance overall economic value addition.

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6: Traditional partner Countries

Bilateral Trade Enhancement would be achieved with countries where Pakistan traditionally/potentially enjoys close relationships.

7: Leverage International Trade Blocks

Enhance market access based on proactive and innovative management of current or emerging world economic / trading blocks. These would initially be pursued with:

EU D-8 ECO OIC SAARC

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International Marketing Division

Planning and management of trade exhibitions and delegations abroad

Selection of participants through a competitive and transparent process

Preparation of briefs on various countries & regional geographies

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International Marketing Division

Analysis of existing and potential markets for developing export promotional activities

Planning and management of trade exhibitions abroad

Selection of participants through a competitive and transparent process

Preparation of briefs on various countries & regional geographies in line with the export strategy

Analysis of economic activity reports Proposals formulation and implementation of

decision. Preparing reports for JMCs and JBCs)

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International Marketing Division

Development and implementation of MOUs Facilitation/hosting of incoming delegations Coordination with Missions regarding trade disputes,

promotional events, displays, EMDF expenditures, etc. Monitoring/maintaining EMDF balances with Missions. Effecting Foreign remittances from EMDF for

expenditures, etc. Support for designing services (advertisements, leaflets,

stall construction / lay outs) Visa facilitation for exhibitors, delegates and TDAP

officers. Budgeting of events and preparation of foreign exchange

requirements.

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Objectives of Participation in Exhibitions

To maximize Pakistani exports and their share in global market.

To give opportunity new and medium to small size exporters to explore international markets.

To increase geographical spread. To increase exports of our

developmental categories. To support exposure of Pakistani

exports in the regional trade blocks.

To encourage women entrepreneurship.

To project a correct modern and enterprising image of Pakistan as an exporting country.

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Top 20 Export Markets of Pakistan VALUE IN '000.$

S. No. COUNTRY BY COMMDITIES JULY-JUNE CHANGE JULY-JUNE

2007-08 2006-07 VALUE % 2007-08 2006-07

  G R A N D T O T A L 19,052,291 16,976,243 2,076,048 12.23 100.00 100.00

1 U.S.AMERICA 3,719,360 4,183,427 (464,067) (11.09) 19.52 24.64

2 UNITED ARAB EMIRATES 2,070,953 1,385,082 685,871 49.52 10.87 8.16

3 AFGHANISTAN 1,143,663 753,939 389,724 51.69 6.00 4.44

4 UNITED KINGDOM 1,030,028 950,187 79,841 8.40 5.41 5.60

5 GERMANY 816,615 701,347 115,268 16.44 4.29 4.13

6 ITALY 723,631 639,680 83,951 13.12 3.80 3.77

7 CHINA 684,793 575,903 108,890 18.91 3.59 3.39

8 SPAIN 542,099 465,504 76,595 16.45 2.85 2.74

9 HONG KONG 521,643 653,903 (132,260) (20.23) 2.74 3.85

10 NETHERLANDS 514,859 441,968 72,891 16.49 2.70 2.60

11 TURKEY 435,981 389,924 46,057 11.81 2.29 2.30

12 BELGIUM 409,431 360,086 49,345 13.70 2.15 2.12

13 SAUDI ARABIA 380,080 289,118 90,962 31.46 1.99 1.70

14 FRANCE 365,809 346,150 19,659 5.68 1.92 2.04

15 BANGLADESH 341,958 261,947 80,011 30.54 1.79 1.54

16 SOUTH AFRICA 318,461 280,636 37,825 13.48 1.67 1.65

17 INDIA 254,858 342,918 (88,060) (25.68) 1.34 2.02

18 OMAN 223,748 63,636 160,112 251.61 1.17 0.37

19 SRI LANKA 214,582 200,605 13,977 6.97 1.13 1.18

20 IRAN ( ISLAMIC R.) 213,800 167,545 46,255 27.61 1.12 0.99

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Top Export Industries of Pakistan

S. No. COMMODITIES

JULY-JUNE 2007-08 JULY- JUNE 2006-07 CHANGE

EXPORT % SHARE EXPORT % SHARE VALUE %

1 Cotton Fabrics 2,010,611 10.55 2,026,547 11.94 (15,936) (0.79)

2 Bedware 1,903,501 9.99 1,995,899 11.76 (92,398) (4.63)

3 Knitwear 1,872,030 9.83 1,798,477 10.59 73,553 4.09

4 Rice 1,836,063 9.64 1,125,819 6.63 710,244 63.09

5 Ready-made Garments 1,452,477 7.62 1,547,345 9.11 (94,868) (6.13)

6 Cotton Yarn 1,300,968 6.83 1,428,041 8.41 (127,073) (8.90)

7 Petroleum & its products 1,259,330 6.61 858,379 5.06 400,951 46.71

8 Chemical / Products 619,178 3.25 391,598 2.31 227,580 58.12

9 Towels 613,065 3.22 610,712 3.60 2,353 0.39

10 Textile Madeups 537,068 2.82 514,313 3.03 22,755 4.42

11 Leather Garments 528,154 2.77 388,115 2.29 140,039 36.08

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Top Export Industries of Pakistan

S. No. COMMODITIES JULY-JUNE 2007-08 JULY- JUNE 2006-07 CHANGE

EXPORT % SHARE EXPORT % SHARE VALUE %

12 Cement 420,188 2.21 145,856 0.86 274,332 188.08

13 Leather Tanned 415,261 2.18 356,884 2.10 58,377 16.36

14 Synthetic Textiles 410,308 2.15 419,724 2.47 (9,416) (2.24)

15 Sports Goods 302,723 1.59 288,383 1.70 14,340 4.97

16 Surgical Instruments 261,072 1.37 190,789 1.12 70,283 36.84

17 Carpets & Rugs 216,620 1.14 233,334 1.37 (16,714) (7.16)

18 Jewellery 213,364 1.12 42,028 0.25 171,336 407.67

19 Fish & Fish Preparations 211,649 1.11 188,320 1.11 23,329 12.39

20 Engneering Goods 211,329 1.11 237,475 1.40 (26,146) (11.01)

21 Fruits 145,760 0.77 113,635 0.67 32,125 28.27

22 Vegetables 56,390 0.30 54,547 0.32 1,843 3.38

  Sub Total 16,797,109 88.16 14,956,220 88.10 1,840,889 12.31

  Others 2,255,182 11.84 2,020,023 11.90 235,159 11.64

  Grand Total 19,052,291 100.00 16,976,243 100.00 2,076,048 12.23