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    Pakistan'S Trade Continues To Expand Rapidly

    2008/10/17 11:04:00 20

    Pakistan Trade

    Pakistan is facing severe financial tensions and the trade deficit is increasing month by month.

    According to the latest official statistics released by the Federal Statistical Office, Pakistan's trade deficit hit a new high of $5 billion 540 million in the first quarter of 2008-09.

    On the one hand, Pakistan's exports grew by 19.19% in the first quarter of 2008 to 5 billion 260 million US dollars, up from 4 billion 420 million US dollars in the same quarter last year.

    On the other hand, imports grew by 34.29% to $10 billion 818 million, compared with $8 billion 56 million in the same period last year.

    In September alone, the trade deficit increased by 62.12% to $2 billion 20 million, compared with $1 billion 250 million in the same period last year.

    The government's target is export growth of 16%, reaching US $21 billion 100 million, while imports are expected to reach US $37 billion 190 million.

    The government had planned to keep the import growth rate down to 6.5%, but the actual import was nearly 5 times that of the plan.

    Experts say it is difficult for Pakistan to complete its export targets this year, because economic turmoil will affect western countries for a long time.

    In addition, in recent months, the Pakistan currency has depreciated sharply against the US dollar, and the price of Pakistan finished products in the international market has increased, but the import price is lower, which will encourage Pakistan to expand its imports.

    A few months ago, the government promised to implement the R & D funding support policy to the textile industry, but its position is still fruitless.

    In addition, the central bank requires exporters to deliver the LC deposit, and the prices of public utilities increase, such as electricity and gas. These factors have a lasting impact on textile enterprises, and textile products are the largest contribution to Pakistan's export basket so far.

    Experts suggest that the government take immediate action to find a lasting solution, otherwise Pakistan's trade deficit will increase.

    (Jia Xiao)

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