The Chairman of National Business Group Pakistan, President of Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, Chairman of FPCCI Policy Advisory Board, and former provincial minister Mian Zahid Hussain said on Friday that the increasing deficit in regional trade is worrying.
He said that during the first seven months of the current fiscal year, Pakistan’s trade deficit with the region’s countries has increased by 40 percent, which is a challenge for policymakers that should be given special attention.
Mian Zahid Hussain said that according to State Bank data, the main reason for the increase in trade deficit is the increase in imports from China.
Talking to the business community, the veteran business leader said that during the seven months, goods worth $8.9 billion have been imported from China, 28 percent more than last year. In the same period, Pakistan’s exports to China have decreased by 14 percent to just $1.47 billion, which is regrettable.
According to official data, Mian Zahid Hussain said Pakistani exports to other regional countries like Bangladesh, Sri Lanka, and Maldives have slightly increased compared to China.
The business leader said that the main reasons for the trade deficit include the vast imports of yarn and other goods without customs duty and sales tax, which are caused by the misuse of the Export Facilitation Scheme (EFS).
The EFS is a revolutionary scheme for promoting exports, but it is essential to stop its misuse and punish those involved in fraud, he demanded.
Mian Zahid Hussain said that Pakistan has great potential to increase its exports in regional trade, but electricity, gas prices, lack of value addition, and weak infrastructure are significant obstacles.
He noted that steps are needed to balance trade, and it is necessary to focus on the export of value-added products instead of raw materials. He welcomed Prime Minister Shahbaz Sharif’s visit to Uzbekistan and the agreement to increase mutual trade to $2 billion.
The two countries have also signed memorandums of understanding and agreements to increase cooperation in various sectors. The growing relations between Pakistan and Uzbekistan can be essential in strengthening regional ties in Central Asia. Pakistan and Central Asian countries are located nearby and are tied by historical and cultural ties. Close relations with Central Asian countries are in the interest of Pakistan and these countries. However, Afghanistan is in the middle, and it should cooperate in this regard so that trade can be done by road and rail.
Mian Zahid Hussain further said that all countries are in consensus on the proposals for a new trade bloc comprising Pakistan, Uzbekistan, Tajikistan, Iran, and Turkey. Pakistan can play an essential role in this regard, which requires vigorous efforts.
