Challenges for Agro-Based Exports (including SPS)

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Challenges for Agro-Based Exports (including SPS)

• Presentation on the Final TRTA even
• by
• Aisha Humera,
• Deputy Secretary
• Ministry of Food,Agriculture and Livestock
  (MINFAL)

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Target for the current year

• To enhance the current export to GDP ratio from
  around 13 to 15 in 6-7 years

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Export projections for the year 2007-08

• Determined to implement Rapid Export Growth
  Strategy (REGS) and to achieve high export growth
  rate, export target of US19.2 Bn is set for the
  year 2007-08.

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Export Comparison
World
Pakistan
2003 7,503 Billion
2003 11.2 Billion
Textile
Engineering Goods
2005 14.4 Billion
2005 10,159 Billion
Growth 2003-05 35.4
Growth 2003-05 21.0
Engineering Goods
Textile
Textile Clothing
Others
Chemicals
Agri Products
Engg. Goods
Source WTO Database FBS
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UAE 1.3 / 2.6
Textile, Fish, Fruits Veg, Leather, Cutlery, M
G, Chemicals Minerals
Afghanistan 1.1 / 3.2
China 0.5 / 5.0
Fruits Veg. Ghee, Meat, Milk, Wheat, Eng.
Goods, Furniture, G J, surgical, Textile,
Rice, Cutlery
Textile Clothing, Carpets, Leather, Eng.
Goods, Fish Surgical Instruments, Sports Goods,
Cutlery, Furniture, MG,G J, Rice
Fruits Veg, Fish, Textile Carpets,
Leather, Surgical, S. Goods, Eng. Goods, M G,
G J
USA 4.2 / 11.0
EU 4.5 / 9.5
Others 1.9 / 4.0
Fruits Veg, Meat, Leather, Fish, Cutlery, Rice,
Sports Goods, Furniture, Eng. Goods, Pharma, M
G, G J
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• Pakistans image continues to be that of a
  low quality, low price, non consistent and
  unreliable supplier
• Low to medium technology and low RD
  capabilities. Infrastructure deficit in energy,
  water and roads etc. Poor technological
  infrastructure.
• Absence of integrated and holistic medium to long
  term export strategy
• Low productivity and low agriculture yield
• Average quality of products and lack of brand
  names
• Low value addition Low level of foreign direct
  investment in manufacturing /exportable sectors.
• Non-facilitative taxation system
• High cost of doing business despite some
  positive indications
• Lack of product and geographical diversification
  in exports
• Weak export culture and drive.
• Absence of economies of scale in engineering
  sector

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Major Challenges for Agro-Based exports

• Low-competitiveness on supply side
• Lack of productive capacity (as a result of low
  investment in new machinery and technology
  leading to lower productivity and high costs)
• Tax treatment that favors investment in the
  non-industrial sectors ,particularly speculative
  businesses i.e stocks and real estate
• Low end and low quality products
• Fragmented and informally organized export
  industries

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Major Challenges for Agro-Based exports

• Unmatched demand for energy
• Market access on demand side(compliance with
  international standards)
• Compliance with social,environment and health
  standards
• Insufficient product diversification
• competitiveness

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Major Challenges for Agro-Based exports

• Cold Chain to minimize post harvest losses
• High interest rate and lack of infrastructure
• Lack of modern storage facilities
• SPS requirements
• Grading,packing,fumigation,testing and
  certification problems.

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Rice
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Rice
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Rice
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Fruits Vegetables

• Export Benchmark
  Targets
• FY06
  FY13
  
• Bn 0.14
  0.9-1.1

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With Cool Chain
Air Port Cold Store
Consumer
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2
1
1
Field Heat Removal
Packaging
Reefer Transport
Urban Cold Store
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Seaport Cold Store
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3
Whole Saler
Retailer
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Local Mandi
Bulk Transport
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Post Harvest
Without Cool Chain
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Meat Meat Preparation

• Export Targets
• Export Benchmark
  Target
  
  FY
  06 FY 013
• Bn 0.02 0.10

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Meat Meat Preparation
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Meat Meat preparation
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Export target for Fish Fish Preparations

• Export bench mark
  Target
• FY06
  FY13
• b 0.20
  2.5

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Fish Fish preparations
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Fish fish preparations
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Fish Fish preparations
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Fish Fish preparations
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Compliance of International standards
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Approach followed by MinFAL
TRADE CAPACITY BUILDING
P R OD U C T S
M A R K E T S
Products to Market
Connect to the Market
Develop Competitive Production Capability
Prove Conformity with Market Requirements
Compete
Conform
Connect
.by upgrading supply capacities and standards
infrastructures
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Initiatives taken by MINFAL to address constraints

• NAPHIS- A coordinating body for all SPS matters.
• Developing strategy for cold chain in
  consultation with MoC under NTCIP
• Developing zones for horticulture and Livestock
  in consultation with PHEDB and LDDB
• Investing in HR development-mega project of PARC
• Creation of Trade and Investment Unit in the
• Economic Wing of MinFAL
• Restructuring of MinFAL-Leadership role as a
  Knowledge based organization

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The Key Management Tasks Ahead -identified
under UNIDO,WB study
Creation of NAPHIS
Effective SPS Management
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Export Market Development

• There is a need to link quality product with an
  appropriate market assistance required from
  TRTA-II through a twining arrangement of
  technical assistance through UNIDO and ITC
• Need to develop product and market specific
  studies action plans
• HR development

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THANK YOU