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Today's Paper | November 20, 2024

Published 05 Apr, 2013 05:17am

Trade imbalance with India, China on rise

KARACHI: Pakistan’s imports from regional countries are on the rise, indicating country’s poor economic management and inability to counter regional pressure and invasion of goods and services.

The country has remained a victim of donor policies that favour US and European markets, but regional countries have no such role, like donors or supporters.

According to official data, imports from the two neighbouring countries, China and India, increased during the eight months of the current fiscal year while Afghanistan also improved its position against Pakistan. Afghanistan largely depends on Pakistan for imports which remained an advantage.

The data shows that imports from Afghanistan increased to $21 million while these were just $7m during the eight months period.

China, the major trading partner, also improved its balance against Pakistan during the eight months of the current fiscal year. Imports from China reached $2.998bn against $2.707bn imports during the same period of last year.

What is important in the regional trade is that China is emerging as a major trading partner of Pakistan though trade is still in favour of China.

Despite troubled political and trade relations, India succeeded in improving its trade with Pakistan which is significantly higher in favour of India.

Fears are there that after getting status of a Most-Favoured Nation, Indian goods and services would fast penetrate in the Pakistani market and trade imbalance of the country would be more painful for its economy.

During eight months, imports from India increased to $1.077bn compared to $818m in the corresponding period of last year.

Imports increased by 31pc during this period. However, exports to India did not see any encouraging improvement.

During the same period, exports to India rose $203m compared to $199m.

Pakistan’s exports to India are just 18pc of imports from India, giving her an absolute domination over Pakistan.

The situation is different in case of trade with China as exports to China are 59pc of imports from the same country. It shows trading is increasing on both sides.

In case of Iran, both imports and exports dropped during the eight months of the current fiscal year.

Export to Iran were to the tune of $77m compared to $82m last year while imports slipped to $19m compared to $76m.

Among regional countries, trade with Iran is at the lowest ebb in terms of amount. Total trading with Iran in 2011-12 was $254m.

However, most shocking could be the trading with Afghanistan which has been falling.

Pakistan has absolute advantage against Afghanistan as its exports to the country in 2011-12 stood at $1.379bn compared to just $13m imports.

This huge advantage has started shrinking as exports during the eight months fell by 24pc. The largest trading partner in the region is China as trade of the two countries rose to $6.362bn in 2001-12.

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