Trade imbalance and rising foreign debts are reversing the benefits of hard-earned gains and situation would be more critical if immediate controlling measures are not taken. The Lahore Chamber of Commerce and Industry (LCCI) President Malik Tahir Javed in a statement on Monday said that country made a good economic progress in recent past but swelling trade deficit and debts put a reverse gear and are posing serious challenges to the economy.
Quoting a report, he said the trade deficit has widened by US $12.13 billion in first four months of current fiscal year despite 10 percent growth in exports during the same period. The balance of trade widened by 31.24 percent to deficit of 12.13 during July - October 2017/2018 as compared with the deficit of $9.24 billion in the corresponding period of the last fiscal year.
He said the issue of huge trade imbalance could only be tackled by enhancing exports and all other ways like imposition of regulatory duty are wastage of time. Pakistan's most favourite export markets have been Europe, North America and Gulf, he said. The exporters need to look for new markets in Central Asia and in South towards Africa, Indonesia and Malaysia.
He said that Central African Republics have on the whole round $70 billion imports whereas Pakistan's exports to them are negligible. Pakistan should particularly sign free trade agreements with Central Asian Republics and the countries in Gulf, Indonesia and Malaysia, he opined.
He said that Pakistani exports are also suffering due to skyrocketing input cost together with mind boggling tax regime therefore these issues should also be resolved with due consultation, he said. Javed said that reportedly external debt of Pakistan increased to $82.981 billion in the second quarter of 2017 from $75.747 billion in the first quarter of 2017. He said that debt servicing is eating up a major part of fiscal budget therefore policy of acquire debt should be abandoned in the larger interest of the country, he added.
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