18/04/2011 (Daily Times) - Pakistan’s trade balance—with its 53 trading partners—has been in deficit for the last five years, National Assembly was informed on Friday.

Negative trade balance with major trading partners recorded during the last fiscal year 2009-10 included China $3.56 billion, Japan $1.431 billion, Kuwait $2.316 billion, Malaysia $1.550 billion, Saudi Arabia $2.992 billion, UAE $3.308 billion and India $957.2 million.

In a written reply submitted to the NA, the Ministry of Commerce stated that name of the countries with which Pakistan trade has been in deficit for the last five years are 53 in numbers. Giving reasons for trade deficit with such huge number of countries, MoC has informed that there are multiple reasons for trade deficit recorded by Pakistan with other

countries. Specific reasons for trade deficit with some of the major trading partners are as follows: Pakistan’s constant trade deficit with Saudi Arabia and other Middle Eastern countries is due mainly to import of oil from them. Trade deficit with Malaysia and Indonesia is because of increasing import of palm oil by Pakistan. Heavy demand for electronic goods and machinery from China in Pakistan has tilted trade balance in favor of China. As regards India, Pakistan’s import basket mostly consists of intermediate goods and cheap industrial machinery, which is vital for our local industry. On account of growing demand for automobile and machinery from Japan by local consumers, Pakistan has been recording trade deficit with them for the last five years. Germany is the traditional source of sophisticated machinery for Pakistan because its exports are more than their imports from Pakistan.

The names of countries whom Pakistan’s trade is in deficit during the last five years especially last fiscal year 2009-10 includes Argentina $14.8 million, Australia $438.7 million, Austria $109.9 million, Bahrain $197 million, Belarus $114.1 million, Belize$1.5 million, Bhutan $0.2 million, Brazil $69.8 million, British Virgin Is.$0.1 million, Burkina Faso (Fr.Up.V $7.7 million, Burundi $7.7 million, Canada $203.3 million, China 3.56 billion, Czech Republic $5.7 million, Egypt (U.A.R.) $48.5 million, Finland $339.9 million, France $106.5 million, Germany $386.3 million, Hungary $3.9 million, Iceland $0.3 million, India $957.2 million, Indonesia $568.2 million, Iran ( Islamic R.) $754.9 million, Japan $1.431 billion, Kenya $28.4 million, Korea D.P.Republic $10.5 million, Korea, Republic of $464 million, Kuwait $2.316 billion, Luxembourg $0.4 million, Malawi $7.6 million, Malaysia $1.550 billion, Mali $10.6 million, Monaco$13.6 million, Morocco $254.0 million, Myanmar $39.1 million, Nepal $0.3 million, O.Asia (Tai.For.Pe.Ki) $144.5 million, Qatar $23.3 million, Russian Federation $69.2 million, Rwanda $17.8 million, Saudi Arabia $2.992 billion, Singapore $773.7 million, Slovenia $19.6 million, Solomon Islands, Swaziland $26.1 million, Sweden $53.9 million, Switzerland $361.8 million, Tajikistan $5.6 million, Thailand $632.5 million, Turkmenistan $12.7 million, UAE $3.308 billion, Ukraine $89.6 million, Uzbekistan $7.7 million, Zambia $31.2 million.

Pakistan’s import during the last five years is divided mainly into seven types. These are food viz edible oil, wheat etc., machinery like power generation, textile machinery & electrical machinery, transport mainly road vehicles, petroleum, raw cotton, synthetic fiber, artificial yarn and like products, fertilizers, insecticides, plastic material, (vii) metals like iron & steel. Besides these miscellaneous items like rubber, paper & paper board were also imported. Year wise detailed import values are cumulative value of imports of Pakistan during last five years (2005-06 to 2009-10) were $162.45 billion. Product group wise detail is food $17.50 billion, machinery $27.32 billion, transport $8.15 billion, Petroleum $45.01 billion, textile $8.69 billion, chemical $25.54 billion, metal $13.30 billion, miscellaneous $3.33 billion and other Items $13.61 billion.

Value of goods imported from India during the last three years i.e. FY2007-08 $1.701 billion, FY2008-09 $1.194 billion, FY2009-2010 $1.225 billion and value of goods exported to India during the last three years includes FY2007-08 $254.858 million, FY2008-09 $319.619 million and FY 2009-2010 $268.332 million.

The APTTA, 2010 was to be implemented on February 12, 2011. However, during the first meeting of the Afghanistan Pakistan Transit Trade Coordination Authority (APTTCA) held from 11-12 February 2011 at Islamabad, both sides agreed to delay the implementation of the Agreement for a period of 4 months due to some pending issues.

To achieve market access and help in removing restrictions on the exports from Pakistan such as TBT’s, Sanitary / Phyto-sanitary issues, TDAP invited various inspection missions of concerned authorities from international market for inspection purposes, which helped in removing restrictions on the export of Kinnows, Mangoes in China and Iran; Meat in UAE and Saudi Arabia and Rice in China.

A total quantity of 260,840 MT of sugar was exported during the year 2007-08, while the export of sugar was banned in the year 2008-09 and the ban still continues. During the year 2007-08, the sugar was exported to Afghanistan, Austria, Bangladesh, China, Germany, Hong Kong, Saudi Arabia, Yemen and United Kingdom. Total sugar imported during last three years is 1,417,017 MT. Year wise imports are as under: FY2008-09 125,743 MT, FY2009-10 501,759 MT and FY2010-11 789,515MT.