In last five years, the volume of bilateral trade
between Australia and Pakistan has ranged between $550 Million to $811
Million. A significantly positive trend in Pakistan’s exports to
Australia was witnessed when these grew by 17.35%, rising from $179
Million (in FY2012-13) to $210 Million (in FY2013-14). Previously, our
exports had stagnated around $175 Million in last three years.
On the other hand, the import of
Australian products in Pakistan declined by 36% (in FY2013-14), falling
from $632 Million to $411 Million. Therefore, the total volume of the
trade dwindled from $811 Million to $611 Million and the balance of
trade (BOT) remained tilted in favour of Australia, as the import of
Australian products in Pakistan has always surpassed our exports to
Australia. However, the adverse BOT position improved for Pakistan
vis-à-vis Australia in last year by 57% when the BOT fell from $453
Million (FY2012-13) to $192 Million (FY2013-14).
The bilateral trade relations
between Australia and Pakistan started soon after the independence of
the subcontinent from the British rule in 1947 and the birth of
Pakistan, when in 1948 a Trade Mission of Pakistan was established in
Sydney. Since then the Trade Mission has remained functional in Sydney
in one form or another to promote the bilateral trade relations and to
facilitate the businesses from both the countries.
A Joint Trade Committee (JTC),
between the two countries is an effective bilateral forum for trade
discussions and negotiations. JTC meetings are held annually, both in
Australia and in Pakistan, on rotation basis. 5th JTC Meeting
was held in Canberra in September 2014 in which issues of bilateral
trade, trade policy, market access, technical support and enhanced
bilateral exchange of trade delegations were discussed. Important
decisions were taken, which included collaboration of Austrade and TDAP
for trade promotion activities and provision of technical assistance by
Australian government under the Country Assistance Programme (CAP) for
strengthening the institutional capacity of Ministry of Commerce and
trade related private sector organisations of Pakistan. Both sides
agreed to continue technical cooperation in the areas of agriculture,
engineering and vocational training. They decided to make use of various
tools for market development including business-to-business meetings,
awareness seminars and exchange of delegations. Secretary Commerce
Islamabad led the Pakistani side of the delegation for the JTC meeting.
On the sidelines of 5th JTC meeting, a Memorandum of Understanding (MoU)
on Strengthening Bilateral Trade and Economic Cooperation was signed
between Pakistan and Australia at the Department of Foreign Affairs and
Trade (DFAT), Canberra.
Promoting business-to-business contacts and exchange of Business Delegations
on regular basis are crucial to boosting trade relations among the
nations. An increased activity has been witnessed in business
interactions between Australia and Pakistan. In order to explore export
opportunities and to establish their business networking in Australia,
three business delegations from Pakistan visited this region during last
one year and a half. In Sept 2013, textile manufacturers and exporters
from Faisalabad Chamber of Commerce and Industry (FCCI) visited Sydney
and Melbourne and held productive meetings with their counterparts. A
business delegation of leading towel manufacturers, duly sponsored by
Trade Development Authority of Pakistan (TDAP) and Towel Manufacturers
Association (TMA) visited Australia and New Zealand in Apr / May 2014
and displayed variety of their terry towel products in the Product
Showcases organised by Pakistan’s Missions in Sydney, Melbourne and
Auckland. Lately, a business delegation from Lahore Chamber of Commerce
and Industry (LCCI), comprising four businessmen visited Sydney,
Melbourne, Hobart and Gold Coast in Oct 2014 and held fruitful
discussions with Australian companies. Several Pakistani businesses are
planning their business trips this year including delegations from
Federation of Chambers of Commerce and Industry (FPCCI), Sialkot Chamber
of Commerce and Industry (SCCI), Rice Exporters Association of Pakistan
(RECP) and LCCI. Besides, a TDAP led and government sponsored business
delegation is due to visit Australia and New Zealand in April 2014.
Effective Business Networking
is vital for the success and growth of business. Trade Mission of
Pakistan Sydney closely liaises with Australian trade bodies and
associations and networks with the leading Australian companies
including importers, buyers, wholesalers, etc. The Mission maintains an
updated account of all the relevant Australian businesses for developing
their linkages with Pakistani exporters.
Participation of businessmen in various International Exhibitions and Trade Fairs
is an important tool for flourishing the individual business at micro
level and growing trade volume at macro level. In Oct 2013, an
Australian Business Delegation visited Pakistan to participate in 8th Expo Pakistan in Karachi. Next month, an Australian Business Delegation is planning to visit Pakistan and participate in 9th
Expo Pakistan in Karachi (26 Feb – 1 Mar 2015). Similarly, Pakistani
manufacturers and exporters participated in Australian International
Sourcing Fair (AISF) Melbourne in Oct 2013 and Nov 2014. Pakistani
manufacturers and exporters of foodstuff and other related products are
being motivated to participate in Fine Foods Australia this year.
Projection of the soft image of Pakistan in Australia is
deemed essential to increasing trade volumes with various trading
partners / nations of the world. Not only the government authorities but
also the leading businessmen from Pakistan share the same view and
strongly advocate it. Accordingly, the Trade Mission Sydney has taken
several initiatives and planned many more for 2015
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