Annual-Analytical-Report-on-Trade-Statistics-of-Pakistan-FY2023-24-2.pdf

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92 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 24.NATURAL GAS, LIQUIFIED

3,946 3,764 4.8

  1. PETROLEUM GAS, LIQUIFIED

789 675 16.9

  1. OTHERS

0 0 -36.0

TEXTILE GROUP

2,714 3,742 -27.5

27.RAW COTTON MT 448 1,679 -73.3 204,888 683,689 -70.0 28.SYNTHETIC FIBRE MT 494 485 1.9 297,706 200,279 48.6 29.SYNTHETIC & ARTIFICIAL SILK YARN MT 605 583 3.8 361,006 209,274 72.5 30.WORN CLOTHING MT 434 371 17.0 990,266 748,245 32.3 31.OTHER TEXTILE ITEMS

733 624 17.5

AGRICULTURE & OTHER CHEMICALS GROUP

8,508 8,928 -4.7

32.FERTILIZER MANUFACTURED MT 685 604 13.3 1,372,073 903,854 51.8 33.INSECTICIDES MT 196 205 -4.1 37,253 41,096 -9.4 34.PLASTIC MATERIALS MT 2,271 2,273 -0.1 1,856,121 1,705,291 8.8 35.MEDICINAL PRODUCTS MT 1,087 1,329 -18.2 48,994 33,412 46.6 36.OTHERS

4,270 4,517 -5.5

METALS GROUP

4,315 4,152 3.9

37.GOLD KG 17 31 -44.4 262 567 -53.8 38.IRON AND STEEL SCRAP MT 1,230 1,152 6.8 2,720,729 2,489,557 9.3 39.IRON AND STEEL MT 2,043 1,890 8.1 2,860,092 2,243,210 27.5 40.ALUMINIUM WROUGHT & WORKED

174 230 -24.4

41.ALL OTHER MATALS & ARTIFICIALS

852 849 0.3

MISCELLANEOUS GROUP

894 869 2.9

42.RUBBER CRUDE INCL.SYNTH/RECLAIM MT 254 209 21.8 443,938 337,345 31.6 43.RUBBER TYRES & TUBES NO 101 93 8.7 4,133,689 3,054,549 35.3 44.WOOD & CORK

106 84 25.9

45.JUTE MT 25 58 -57.5 36,375 64,248 -43.4 46.PAPER & PAPER BOARD MANFACTURES MT 408 426 -4.0 416,951 431,666 -3.4 ALL OTHER ITEMS

3,193 3,987 -19.9

Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 93 SECTION-5 2024 Annexure: B REBASING OF TRADE INDICES

Indices of External Trade statistics of Pakistan are being compiled regularly since 1947. In the past, the trade indices series were computed with 1954-55, 1960-61, 1969-70, 1975-76, 1980-81 as base year. Presently trade indices are being computed with base year 1990-91. Now PBS has completed the process of rebasing of trade indices from 1990-91 to 2017-18. Details of previous base years is given. Description Base Year 1954-55 1960-61 1969-70 1975-76 1980-81 1990-91 2017-18 Classification SITC SITC SITC SITC SITC HS Total Items of Import 9 9 9 9 9 21 Selected Items of Import 2514 1467 1003 3963 6107 Total Items of Export 206 1563 1154 869 1124 3311 Selected Items of Export 446 381 469 1400 3291 Selected Items of Export 38 402 358 453 632 1674 DATA SOURCE After the automation of trade data by the Federal Board of Revenue (FBR), Pakistan Revenue Automation (Pvt.) Limited (PRAL) has been providing trade data (Imports & Exports) in Excel format through E-mail to PBS every month. Steps taken to rebase the Trade Statistics from 1990-91 to 2017-18. Keeping in view the importance of trade indices, PBS has taken the following steps to finalize the base year for Import/Export trade indices. a.  Formulation of a Technical Committee to guide and review the methodology of rebasing of trade statistics from 1990-91 to 2017-18. b.  Collaboration and consultation with several stakeholders such as; FBR and PRAL. c.  Technical assistance from UNSD was sought to address the international standards in rebasing of trade statistics. SALIENT FEATURES OF THE NEW BASE Following are the salient features of new base year 2017-18 1.  In-line with UN recommendation for compilation of trade statistics • The revised indices based on 2017-2018 base year is in accordance with UN recommended Harmonized Commodity Description and Coding Systems 2017. • This revision enabled PBS to get indices of 21 HS sections consisting of several trade items defined by latest UN’s Harmonized Commodity Description and Coding System (HS) while previously the grouping was done in 9 sections following the Pakistan Standard Trade Classification Rev. 3 (PSTC R3).

94 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 2.  An extended basket of goods / commodities • An extended basket of selected items comprising of 1,674 has been selected for construction of export indices and 3,311 items for import indices. Current count was 632 and 1,124 for export and import indices respectively. 3.  Inclusion of EPZ data

Inclusion of EPZ data for compilation of trade statistics will be a new addition. This will help the data to cover a wider aspects of trade statistics. BASE YEAR SELECTION AND REBASING PARAMETERS FOR COMPI­ LATION OF TRADE INDICES SELECTION OF BASE YEAR World Custom Organization (WCO) has introduced Harmonized System (HS) of Classification Codes in 1988 which has undergone several changes, the recent changes were made in HS Codes Classification in 2017. Accordingly, Pakistan Custom has also revised its PCT code in July, 2017. The rebasing exercise is being conducted to ensure that the ‘baskets’ of commodities and composition of imported items/commodities and exported items/ commodities are representative of the current trade patterns and are in-line with the United Nations recommendations relating to trade statistics. Hence, the selection of 2017-2018 as new base year will be helpful in presenting the current phenomenon by incorporating the recent modification introduced in coding system of external trade data.
The work has been initiated on new base i.e. 2017- 18, trade data and indices have been developed from the quarter of July-Sep 2018 to Jan-Mar-2020 (Seven Quarters). SELECTION OF ITEMS/COMMODITIES During the rebasing exercise, the items/commodities included in the export and import indices baskets were reviewed and updated using the following criteria: • Items with share equal to or greater than 0.01% of total imports/exports are selected. • Items with share less than 0.01% of total value has been dropped. • Items having monetary denomination only such as; gold, legal tender (securities, bank notes, currencies, coins in circulations) has been excluded. COMPARISON OF SELECTED ITEMS The following table compares the coverage of items in both bases i.e. old (1990-91) and new (2017-18). SELECTION BY VALUES TRADE TYPE PERCENTAGE DIFFERENCE 2017-18 1990-91 EXPORTS 99.5% 96.9% 2.6% IMPORTS 99.4% 86.5% 12.9% SELECTION BY ITEMS/HS CODES TRADE TYPE ITEMS/HS CODES DIFFERENCE 2017-18 1990-91 EXPORTS 1674 632 1024 IMPORTS 3311 1124 2187 COMMODITY CLASSIFICATION In pursuance of recommendations of UN Statistics Division, the Harmonized Commodity Description and Coding System (HS) for compilation of External Trade Statistics had been adopted in July 2002. Pakistan Bureau of Statistics (PBS), Federal Board of Revenue (FBR), Pakistan Customs, Ministry of Commerce and Trade Development Authority of Pakistan (TDAP) have prepared Alpha Register of more than 6000 HS codes at eight-digit level based on HS 2002. Currently the register is updated according to Harmonized Commodity Description and Coding System (HS) 2017 with 7354 HS codes at eight-digit level. At present, the trade indices data is being prepared and published on commodity group level of 9 commodity groups defined by Standard International Trade Classification (SITC-R3). By adopting 2017-18 as a base year the trade indices data as become be in- line with HS coding scheme 2017 and is ready to be issued according to HS coding system which consists of 21 sections. BASKET OF GOODS / COMMODITIES AND ASSIGNED WEIGHTS The trade indices for the base year 2017-18 covers 1674 Export and 3311 Import items, representing the current trade structure of Pakistan. The selection has been made under the criteria of having large transactional value (greater than 0.01% of total value). 1- For that purpose, each items within a particular HS section is assessed and share held by each item

Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 95 SECTION-5 2024 within section has been obtained. 2- As a second step items having share of less than 0.01% share in total value held at section level were ignored. After the selection of basket of goods at each section below mentioned formula has been used to assign overall weights. 3- Summary details of current basket and proposed basket are given below:- Base Year External Trade Actual Items Selected Items % age Selected Actual Value (Billion Rs.) SelectedValue (Billion Rs.) % age Se­ lected 2017-18 Exports 3291 1674 51 2551.9 2538.7 99.5 Imports 6107 3311 54 6693.7 6650.3 99.4 1990-91 Exports 1400 632 45 138.3 134.0 96.9 Imports 3963 1124 28 171.1 148.1 86.5 The selected items are grouped in 21 sections. The weights of each HS group are given below: S.No ALL GROUPS CH APTERS (01-99) Export (100) IMPORT (100) 1 Live Animals and Animals Products 1—5 3.29 0.42 2 Vegetable Products 6—14 14 5.48 3 Animal or Vegetable Fats, Oils and Waxes 15 0.18 3.75 4 Prepared Foodstuffs; Beverages, Spirits, Vinegar and Tobacco 16--24 5.65 0.93 5 Mineral Products 25--27 3.88 26.45 6 Products of Chemical or Allied Industries 28--38 1.73 10.91 7 Plastics and Articles thereof; Rubber and Articles thereof 39--40 1.31 5.22 8 Raw Hide and Skins, Leather, Fur skins and Articles thereof 41--43 4.36 0.16 9 Wood and Articles of Wood 44--46 0.17 0.36 10 Pulp of Wood or of other Fibrous Cellulosic Material 47--49 0.39 1.3 11 Textiles and Textile Articles 50--63 58.58 6.15 12 Footwear, Headgear, Umbrellas, Walking Sticks etc. 64--67 0.48 0.19 13 Articles of Stone, Plaster, Cement, Asbestos, Mica or similar Materials 68--70 0.19 0.79 14 Natural or Cultured Pearls, Precious or Semi-Precious Stones, Metals 71 0.03 0.05 15 Base Metals and Articles or Base Metal 72--83 1.8 9.12 16 Machinery and Mechanical Appliances 84--85 0.73 19.29 17 Vehicles, Aircraft, Vessels and Associated Transport Equipment 86--89 0.17 6.99 18 Optical, Photographic, Cinematographer, Measuring, Checking, Preci­ sion Apparatus 90--92 1.66 1.52 19 Arms and Ammunition, Parts and Accessories thereof 93 0.02 0.01 20 Miscellaneous Manufactured Articles 94--96 1.4 0.92 21 Works of Arts, Collectors, Pieces, Antiques and Special Transactions NES 97--99 0 0

96 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y COVERAGE OF EXPORT / IMPORT DATA
Trade data compiled by PBS includes all transactions carried through sea, air and land on government, semi- government and private accounts. Export statistics is a complete record of physical movement of merchandise out of Pakistan to foreign countries. Imports statistics represent the arrival of goods from foreign countries However, the following are excluded from export and import statistics: • Defense stores • Gold & Silver coin or bullion and currency notes • Articles of Baggage and Personal effects of passengers • Relief goods/goods of no commercial value • Trade in transit through Pakistan Currently PBS is compiling foreign trade statistics on the basis of primary data provided by FBR/PRAL excluding EPZ transactions with rest of the world. Later during the meeting held on 2-3 October, 2019 under the Chairmanship of Mr. Abdul Razak Dawood, Advisor to Prime Minister for Commerce, Textile, Industry & Production and Investment it was decided to include EPZ transactions with rest of the world in external trade statistics of Pakistan. Subsequently a meeting was held with representatives of PRAL in Karachi for provision of EPZ data. PRAL agreed to provide EPZ data for the compilation of trade indices on new base of 2017-18. Now, in this new base year EPZ transactions with rest of the world will be made part of external trade statistics. TRADE STATISTICS MANAGEMENT INFORMATION SYSTEM (TSMIS)

Currently PBS is using COBOL based software for processing and compilation of external trade statistics. In order to upgrade/replace current processing system by using new technologies, it was decided to develop a new software named Trade Statistics Management Information System (TSMIS). This software is currently in development phase. TSMIS is based on following technologies: • Microsoft Visual Studio 2019 (VB.Net)
• Microsoft SQL Server (2019) • Crystal Reports Software has following major modules: a.  Data Loading and mapping with international /national standardization b.  Data Editing/Consistency checking c.  Reports COMPILATION OF TRADE DATA In order to maintain the quality of data the dataset is assessed and checked using following criteria: TREATMENT OF RAW DATA 1.  Missing Quantities: If data have no quantity for items, we insert quantity of the items w.r.t to its standard unit value. 2.  Adjustment of Unit Value: If data shows outliers and high variance in unit value of item, we adjust quantity to its standard unit value 3.  Change of HS Code: If HS code of items not match with its description, we change the HS code according to description. 4.  Change of Units: If data have unstandardized units, we change units and adjust quantities according to standard units 5.  Homogeneity of Units: If data shows more than one unit of an item, we make one homogenized standard unit of the item and adjust quantities according to it. 6.  Separation of samples and items that is uneconomical If data have samples and uneconomical values, we adjust them to specific HS codes (99090000 and 9910000).