Pakistan News And Discussion-9

[Naresh]

<b>Pak sustains $506 million deficit in trade with India</b> <!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo-->

LAHORE - Pakistan has sustained a huge deficit of 506 million dollars in bilateral trade with its arch-rival India in last financial year, The Nation learnt on Friday.

Pakistan has imported 770 million dollars worth different items from India in 2005-06 and exported there only 264 million dollars various items.

Trade liberalization with India in last financial year has led to a huge loss to Pakistan in 2005-06, an official of Commerce Ministry told The Nation.

In last financial year the imports from the neighbouring country have increased by 285 million dollars when compared to 485 million dollars imports in 2004-05, he said.

Pakistan’s exports to India amounted to 264 million dollars in last fiscal, up by 74 million dollars if measured with 190 million dollars exports in 2004-05. An interesting development, he said, is that the bilateral trade of the two countries has exceeded one billion dollars mark in last financial year and settled at 1.034 billion dollars for the first time.

The two-way trade of both the countries has edged up by 359 million dollars in comparison with 2004-05, when the bilateral trade of arch-rival bordering countries amounted to 675 million dollars.

Official sources said that Indian exports to Pakistan are steadily growing in the wake of trade liberalization between the two countries, whereas exports to the neighbouring country are showing unimpressive increase.

Officials said that the trade deficit of the country would further expand in the current financial year as the federal government has allowed the import of 302 more items from India on the demand of the private sector.

It is worth noting that in 2001 the bilateral trade of Pakistan and India suffered a major blow when the neighbouring country suspended Samjhota Express and Dosti Bus Service while blaming Pakistan to sponsoring attack on Indian parliament.

Pakistan government not only negated the allegation but also gave a befitting response by suspending trade with India through rail and road that proved a shock for the Indians.

Although both the countries continued trade by sea, the suspension of trade with India through rail and road steadily reduced the volume of two countries mutual trade and deficit to Pakistan, said the officials.
Both the countries, however, have improved their trade relationship a couple of years back in the wake of beginning of Confidence Building Measures (CBMs).

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->