Pakistan’s Access to Other/New Markets (Opportunities)

Sustained growth in export earnings has taken place. In the first year, when the WTO regime became operational, export earnings amounted to US$3.142 millions. Thereafter there has been a sustained growth and the values of exports for the year 2004-05 are US$12.3 millions. Though, it can not be claimed that WTO is the only factor underlying this growth yet it can be assumed that the liberalized WTO regime has made a contribution to better export performance. A study of tariff structures in various countries have shown that at present a large number of countries have either lower tariff rates or even zero tariff. The WTO regime has indeed improved market access for Pakistan’s furniture industry.
Information as to tariff rates in markets of our ten major buyers would help us to appreciate the extent of opportunities available to Pakistan.
Market Access is not a problem for Pakistan for furniture products. Statistics in the table above show that the market access is not a problem as such for the Pakistani furniture. The main constraint experienced by Pakistan is that of supply side lack of capacity. Under the WTO liberalized import regime, Pakistani exporters need to concentrate on the markets like OECD countries particularly the EU, where applied tariff is 0%. Although EU is one of the largest furniture importing markets in the world, yet Pakistan’s market share there is less than 1%. Only 30% of the Pakistani exports are destined for EU (Source: ITC Product Map). It would be worthwhile to make efforts to increase flow of exports to the EU. This, of course, would require a radical change in the strategy particularly in terms of range of products and design that are in demand by the EU buyers. We must learn to produce what is liked and required abroad and at competitive prices.