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2. 2 Trade Development Authority of Pakistan Presentation by Mir Nasir Abbas, DG Marketing Division (Europe & Asia)

3. 3 Trade Development Authority of Pakistan The Trade Development Authority of Pakistan (TDAP), formerly Export Promotion Bureau (EPB), is Pakistans 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.

4. 4 4 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

5. 5 5 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

6. 6 6 Exhibitions:Number102 Region-wiseFar East Asia 20 North America 12 Europe 37 South America 4 CIS / Russia 7 SAARC 6 Middle East 9 Africa 7 Sector-wiseTextile 16 Other 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:Number14 (Outgoing) Single Country: Sri Lanka 11-13 Jan., 2008 – 92 Exhibitors India20-23 Feb., 2009(Preparations being made)

7. 7 7 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

8. 8 8 Balance of Trade (Since 2002)

9. 9 9 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. 1 st 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)

10. 10 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 TDAs increased focus on increasing market share of Pakistans exports in new Asian markets especially Russia, China, India and others.

11. 11 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 Divisions 1) Agro-food 2) Textiles 3) Minerals 4) 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

12. 12 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 Punjab Regional Offices Director General N.W.F.P Director Balochista n 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

13. 13 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)

14. 14 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)

15. 15 Pakistans 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.

16. 16 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

17. 17 1.Enhance World Market: Enhance world market shares of the Core Product Categories via 1.1Increased penetration of our best performing Core Product Categories in the top 10 respective countries. 1.2Selectively increase the penetration of the Core Product Categories in the next top 10 countries. Core CategoriesOther 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

18. 18 Core Product (Textile):

19. 19 Other Core Product:

20. 20 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:

21. 21 3.Export Diversification: Fisheries Fruit & Vegetables Marble & Granite. Engineering goods. Poultry I.T- Software Gems & Jewelry Chemicals Cement

22. 22 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

23. 23 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.

24. 24 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

25. 25 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

26. 26 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)

27. 27 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.

28. 28 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.

29. 29 Top 20 Export Markets of Pakistan VALUE IN '000.$ S. No.COUNTRY BY COMMDITIES JULY-JUNECHANGE JULY-JUNE 2007-08 2006-07VALUE% 2007-08 2006-07 G R A N D T O T A L 19,052,291 16,976,2432,076,04812.23100.00 1U.S.AMERICA 3,719,360 4,183,427(464,067)(11.09)19.5224.64 2UNITED ARAB EMIRATES 2,070,953 1,385,082685,87149.5210.878.16 3AFGHANISTAN 1,143,663 753,939389,72451.696.004.44 4UNITED KINGDOM 1,030,028 950,18779,8418.405.415.60 5GERMANY 816,615 701,347115,26816.444.294.13 6ITALY 723,631 639,68083,95113.123.803.77 7CHINA 684,793 575,903108,89018.913.593.39 8SPAIN 542,099 465,50476,59516.452.852.74 9HONG KONG 521,643 653,903(132,260)(20.23)2.743.85 10NETHERLANDS 514,859 441,96872,89116.492.702.60 11TURKEY 435,981 389,92446,05711.812.292.30 12BELGIUM 409,431 360,08649,34513.702.152.12 13SAUDI ARABIA 380,080 289,11890,96231.461.991.70 14FRANCE 365,809 346,15019,6595.681.922.04 15BANGLADESH 341,958 261,94780,01130.541.791.54 16SOUTH AFRICA 318,461 280,63637,82513.481.671.65 17INDIA 254,858 342,918(88,060)(25.68)1.342.02 18OMAN 223,748 63,636160,112251.611.170.37 19SRI LANKA 214,582 200,60513,9776.971.131.18 20IRAN ( ISLAMIC R.) 213,800 167,54546,25527.611.120.99

30. 30 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

31. 31 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) 18Jewellery 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 20Engneering Goods 211,329 1.11 237,475 1.40 (26,146) (11.01) 21Fruits 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