Humayun hopeful of cut in trade deficit next year

Commerce Minister Humayun Akhtar Khan has said the trade deficit will register marked reduction next year as a result of certain remedial measures and continuation of prudent economic policies. In an interview with PTV, he said the country's exports had been doubled, while the revenue collection reached $711 billion from $300 billion during the last couple of years.
A number of measures were being taken for improving the overall economic situation, he said, adding extraneous trade diplomacy was being pursued across the world for enhancing country's exports.
The minister said the oil price increase has caused $250 million to trade deficit, adding the impacts of oil price increase has not been passed fully to the masses.
The same deficit impacts will not be expected during next year as the machinery exports would decrease during the next year. The balance of payment situation in country was much better and manageable despite trade deficit, he said, adding that $13 billion foreign exchange reserves testify the fact that country's overall economy was in good shape.
Humayun Akhtar said China has reduced duty on various Pakistani products, and it would be zero from January 2008. Exporters of other countries are not enjoying this concession, he added.
He urged Pakistani exporters, industrialists to benefit from duty reduction on imports of Chinese machinery, raw materials, and they should explore Chinese markets.
Import of high technology equipment have been allowed for ensuring provision of latest equipment on reduced rates, the minister said, adding talks were continuing with United States for inking bilateral investment treaty an investment arm of free trade agreement.
He said some areas would be designated in Pakistan. The products would be imported to US at zero duty. Efforts were under way to include textile and apparel products to Pakistan to take maximum benefit from it. Kinnow exports to Iran has resumed. Processing zones would be established in various cities for exports of meat.
Mango processing zones would be set up in Mirpurkhas and Multan. Agri processing zone would also be established in Salam (Sargodha). Apple treatment plant is already working in Quetta. Zero duty is imposed on the import of agri related machinery.
The minister said Safta is in operation after July 1, and it will be implemented fully from 2016. All tariffs excluding sensitive list would be in range between zero and five percent, he said.