Published: July 7, 2009
ISLAMABAD: Despite negative growth in imports from India and growth of Pakistani exports to India, the trade balance between the two sides is in favour of India showing a surplus of $456 million, reveals official trade figures compiled by the commerce ministry for the first seven months of FY 2008-09.
In the trade policy of 2008-09, CNG buses, stainless steel, cotton yarn, academic, scientific and professional books, specialised printers, laminators and rollers were allowed from India. The import of these items would help address the global trade deficit of the country, said the policy. Cheaper raw material from India would make Pakistan’s exports more competitive in the international market and the import of diesel and fuel oil from India would also help address global trade deficit, the policy added.
“The importers are too smart and they only means business and know where they get profit and what raw materials are cheaper and would have margin of profit,” said Senior Joint Secretary Shahid Bashir when asked for comments.
Pakistan’s exports grew 60 per cent from $146 million to $235 million from July to January with major increase in fish & fish preparations, cereals, crude rubber, raw cotton, jewellery, music instrument, hosiery and petroleum products.
However, some of Pakistani exports showed negative growth which included vegetables, pharmaceutical products and paper, it added. It further said that Pakistan’s imports from India registered negative growth of 21 per cent from $885 million to $691 million during the period under review. Main items imported from India included cereals, vegetables, crude mineral, fertiliser, leather, rubber, cork & wood manufactures, yarn and surgical instruments while those that registered negative growth consisted of live animals, raw cotton, aircraft equipment, travel goods and apparel.
Besides a South Asian Free Trade Agreement (SAFTA) between Pakistan and India, both the sides through a formal way had limited tradable items while through informal ways (via Dubai) they traded a huge quantity of items.
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