KARACHI: The strong presence of China is blocking the growth of Pakistani exports to Australia.
Except rice, the red dragon of the east is the main supplier of those products, which are Pakistan's top exporting products, a study of Trade Development Authority of Pakistan (TDAP) revealed.
China is the major competent in the products of bedwear and towels and has captured around tow-third of the Australian market.
In case of towel, Bangladesh is enjoying a duty free market access, whereas Pakistan, India and China are facing 17.5 percent import duty.
It mentioned that during the last five years Pakistan's export to Australia was stagnant at around $120 million. However, last year there was an increase of 13 percent in exports to the Australian market.
On the other hand, Pakistan's import from Australia showed ups and downs in the previous years. However in year 2007 and 2008, it had increased significantly to $484 million.
Trade balance remained in favour of Australia and mostly the deficit was more than two and some time three times of Pakistan exports to Australia.
Rice was biggest export item to Australia in 2008. Bed linen of cotton, bed linen of other textile material and towels were the second, third and forth biggest items this year.
Other important items?? export has increased like surgical instruments, leather garments, leather gloves, gloves impregnated, knitted, curtains and broken rice while export of sports related items, cotton fabrics and footballs have decreased.
The study indicated that during year 2008-09, exports to Australia were on the decline and no commodity showed any indication that it would surpass except knitwear, surgical instruments and leather gloves.
On the other hand, coal was the largest import item of Pakistan, which constituted 31 percent of total import from Australia. Colza seeds, phosphate fertilizer and lead were the second, third and forth largest importing products.
On the investment side, Australian investment in Pakistan turned negative with the outflow of $73 million as portfolio investment last year, which otherwise was consistently increasing in the previous years.
