Pakistani Consulate denies decline in trade, says Aus-Pak trade better than before

SBS Urdu talked to Consul General of Pakistan in Sydney, Abdul Majid Yousfani about the trade relations between Australia and Pakistan, support for Pakistani traders in Australia and the availability of Pakistani goods in local markets.

AUs Pak Trade

Source: Supplied

Consul General of Pakistan in Sydney said Pakistani products are available in Australia’s market and trade between the two countries has improved in the last few years.

SBS Urdu interviewed the representative of Pakistani Government in Sydney on Aus-Pak trade relations and how Pakistan manufactured goods are faring in Australian markets.

Talking to SBS Urdu, Consul General of Pakistan in Sydney, Abdul Majid Yousfani said trade between Australia and Pakistan has been a billion dollar plus in recent times and if both goods and services are included between the two countries, it amounts to around $1.8 billion.

“In 2015 – 2016 Pakistani exports to Australia were $307 million (Australian dollars) and in 2016 – 2017, the volume has increased to $338 million (Australian dollars)."

The data available on about the trade between Pakistan and Australia shows that Australia's primary merchandise exports to Pakistan have declined while there is also a decrease in import from Pakistan too by 13.3%.

Consul General said these numbers does not provide the complete account of trade between the two countries.

"Australia’s exports to Pakistan are primarily not our domain. Our focus is Pakistani exports to Australia. The -13% figure does not show the whole picture. The data we have show a 12.5% increase."

In relation to Pakistani products availability in the Australian markets, Consul General said we do see products from many countries including India, Bangladesh, Indonesia and other Asian countries but our focus is also on other products.

“There are several products that you can’t see in grocery shops but are being exported to Australia such as industrial products like crude petroleum which is not seen in local markets but has been used in refineries here.

Crude petroleum export to Australia was around $22.5 mn in FY2015, $36 mn in FY2016 and $77 mn in FY17.”

"The figures we have indicate that the numbers have gone up."
Abdul Majid Yousfani, Consul General of Pakistan, Sydney
Consul General of Pakistan in Sydney, Abdul Majid Yousfani Source: SBS


Screenshot - DFAT Country fact sheet
Source: DFAT website
(screenshot from DFAT country's fact sheet / Courtesy: DFAT website)

Following are the figures provided by Consulate General of Pakistan that show a rising trend of total imports from Pakistan ( The consulate claims these numbers have been provided by DFAT).

Autralia Pakistan Trade numbers
Source: Consulate General of Pakisan Sydney
The Consul General, who took the charge of office in July 2016, said the current balance of trade is unfavourable to Pakistan and we are working to improve the overall trade.
Aus Pak Trade figures
Source: Consulate General of Pakisan Sydney
(Above) Pink legend indicates Pakistani goods imported to Australia (figures in AUD, '000)

Credit: Chart provided by Consulate General of Pakistan

“In Aus-Pak trade relation, currently there is trade deficit on Pakistan’s side. More goods are exported from Australia and similarly less is imported here from Pakistan.  However, the goods going to Pakistan also help the economy such as dairy (Holstein) cows, which are imported for milk production and help in employment.”

On the question of Pakistan’s bestselling products in Australia, Mr Yousfani said Pakistan’s focus is mainly textiles and products related to agriculture.

“Our industry is based on agriculture. From cotton we get textiles and products such as bedsheets, towels, garments, kitchen and industrial textiles. Other products include surgical goods, sports goods and sportswear. We also export crude petroleum to Australia.

But if the local currency (AUD) depreciates, the imported goods will become costly and their demand would reduce. The import of goods from Pakistan is expected to fall in view of 30% depreciation of Australian Dollar. Tariff is applicable on Pakistani textiles and other products as compared to goods from Bangladesh and other LDCs.

Recently, we have exported mangoes to Australia which were not present in local markets when I came. Now you can see Pakistani mangoes in Sydney, Melbourne, Adelaide and even Perth.

On the other hand, Australian exports include fertilisers such as di-ammonium phosphate, dairy cows and other dairy products. There has been a major import of pulses recently. In 2016 – 2017, the largest import from Australia to Pakistan was pulses, as there was a bumper crop here."

 

 

Aus Pak Trade figures - services
Source: Consulate General of Pakisan Sydney
 (Above) Blue legend indicates Pakistani services imported to Australia (figures in AUD, '000)

Credit: Chart provided by Consulate General of Pakistan

 

Australia and Pakistan are both 21st principal export destination for each other.

For Pakistan, US, UK and China hold the top three spots as exports destination.

Mr Yousfani said Pakistan is geographically quite far from Australia hence the low position.

“Currently there is no direct shipping line or airline that can cater to the trade between the two nations. Even the passenger load is through Bangkok or Middle East. However, if there is more trade then we might be able to see trade routes being developed in future.”

But Consul General said in order to promote Pakistani goods, we aim at trade exhibitions in Australia.

“There is a that takes place annually and Pakistani traders promote their goods to the local markets. One of our products which you can see in almost every shop is our spices. Similarly, Pakistani rice is a good export for us.”

However he said that a ‘Made in Pakistan’ exhibition is not possible as it requires a lot of funds and the market in Australia is not that big to hold such a large event.

“For a ‘Made in Pakistan’ exhibition to take place in Australia, we will require three to five million dollars for space, location and marketing. However if you look at Australian market, its population size is the same as Karachi, 24 million. So looking at it from a cost benefit point of view, it is not feasible.”

The Consul General said that Pakistani traders in Australia need to understand that the consulate cannot be part of buying and selling goods but can only facilitate it.
“We are not in the businesses of buying and selling; we are in the business of promotion”.
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6 min read
Published 11 July 2018 3:39pm
Updated 11 July 2018 3:56pm
By Talib Haider

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