LCCI urges government to ensure balance between imports & exports

The Lahore Chamber of Commerce and Industry (LCCI) Tuesday took a strong exception to the historic trade deficit during the last eleven months and urged the ministries of finance and commerce to take measures to ensure balance between imports and exports.
LCCI Acting President Amjad Ali Jawa in a statement on Tuesday said that the issue of trade deficit must be controlled immediately otherwise this important economic indicator would shatter the confidence of investors. Pakistan's trade deficit has sharply swelled by around US $30 billion or 42.12 percent during first 11 months of current fiscal year as compared to the deficit of $21.1 billion in the corresponding months of the last fiscal year.
The widening of trade deficit is due to significant increase in imports by 20.6 percent to $48.53 billion during July - May 2016/2017 as compared to $40.25 billion in the same period of the last fiscal year. On the other hand, he said, exports came down by 3.13 percent to $18.54 billion during the period under review as against $19.14 billion in the same period of the last year.
He said that rising imports and declining exports are developing a perception that Pakistan is becoming a trading place instead of a hub of industrialisation. Apart from cutting the cost of doing business in Pakistan, the government needs to evolve a long-term strategy to make its products attractive in the global market to increase its exports, he said.
Jawa said the growing trade deficit, led by sharp slowdown in exports growth, is posing a key challenge to the macroeconomic stability of the country besides converting it into a consumer society. He said galloping trade deficit might dent country's debt payment capacity that ultimately would not be a happy sign for the overall economy. The LCCI Office-bearers suggested that the concerned government quarters should join heads with the private sector for finding out a methodology for increasing the exports of the country that is a prerequisite to control trade deficit.
He said that major issues like huge delay in release of refunds, continuous power supply to the industrial sector, high input cost and large number of duties and taxes should be resolved on priority to give a relief to the export-oriented sectors,. Pakistani Mission abroad should also be given task to explore new markets and new buyers for Pakistani merchandise besides convincing foreign investors to invest in Pakistan, he added.