Pakistan News And Discussion-11

[Naresh]

[center]<b><span style='font-size:24pt;line-height:100%'>Imports from India surpass $1 billion mark</span></b> <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo-->[/center]

<b>KARACHI - For the first time Pakistan’s imports from India have surpassed the mark of one billion dollars in 11 months of the last financial year, The Nation learnt on Monday. From July 2006 to May 2007 Pakistan’s imports from the arch-rival bordering country amounted to 1.113 billion dollars while exports to India amounted to 288 million dollars. Thus the country had sustained a huge deficit of 827 million dollars in bilateral trade with India in 11 months of FY07.</b> <!--emo&:cool--><img src='style_emoticons/<#EMO_DIR#>/specool.gif' border='0' style='vertical-align:middle' alt='specool.gif' /><!--endemo-->

From July 2006 to May 2007, the imports from India are much higher when compared to 770 million dollars imports in the entire financial year 2005-06. In sharp contrast to a hefty growth in imports from India, the exports of Pakistan to the said trade partner showed a paltry increase when matched with 264 million dollars exports in FY06. Foreign trade analysts said that the trade liberalization had benefited much to India and caused a huge trade deficit to Pakistan. <!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo-->

Pakistan and India liberalized their bilateral trade in 2005-06 as a result their mutual trade showed a substantial growth over 2004-05. Pakistan’s imports in 2005-06 increased to 770 million dollars, from 485 million dollars in 2004-05, while country’s exports to the neighbouring trade partner rose to 264 million in FY06, from 190 million dollars in FY05.

The Nation learnt that the imports of machinery, spare parts, chemicals and raw materials from India depicted a sharp growth in the last financial year. Analysts, however, said that Pakistan should try to reduce the burgeoning trade imbalance with India by promoting exports of different items through mutual arrangement. Otherwise, they said, the balance of trade of the country would further widen in the current financial year.

The bilateral trade of Pakistan and India started paralysing in 2000, when India suspended Samjhota Express service while holding Pakistan responsible for attack on the Indian Parliament. Pakistan not only denied the attack, but also gave a befitting response to India by suspending trade through rail and road from Wahga border that embarrassed Indians and caused a blow to imports from the neighbouring country.

However, in 2003-04 Pakistan and India normalized their trade and diplomatic relationship as a result of which the mutual trade of both the countries started showing improvement.

Worth noting is that the Pakistan government is opening trade with the bordering country on the request of the business community and industrialists.

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