Pakistan suffers huge trade defecit with China
Trade liberalisation with China costs Pakistan dearly
BY JAVED MAHMOOD
LAHORE - Pakistan had sustained a record deficit of $1.488 billion in bilateral trade with China in last financial year, The Nation learnt on Monday.
In 2004-05, Pakistan’s exports to China amounted to $354 million while imports from the said friendly country expanded to 1.842 billion dollars, the highest-ever in a year since the beginning of bilateral trade between two nations.
In last fiscal, the trade deficit had improved by 623 million dollars when measured with 865 million dollars deficit, the country had sustained in trade with China in 2003-04. In percentage, 72 per cent growth had been recorded in the growth of trade deficit in 2004-05.
According to detail, obtained by The Nation, in last fiscal the mutual trade of the two countries had crossed two billion dollars and settled at 2.196 billion, for the first time. When compared to fiscal year 2003-04, the mutual trade of Pakistan and China had gone up by 755 million dollars.
In 2003-04 the overall trade of the two countries stood at 1.441 billion dollars, which enlarged to 2.196 billion dollars in 2004-05, because of liberalisation of trade under the Preferential Trade Agreement, launched from January 2005.
Another important aspect is that Pakistan’s imports from the said country have improved by 689 million dollars, at 1.842 billion dollars in last fiscal as against 1.153 billion dollars in its preceding fiscal year.
Country’s exports to China, however, slightly inched up and amounted to 354 million dollars in 2004-05, from 288 million dollars in 2003-04.
Official sources maintained that bilateral trade between Pakistan and China had shown a rapid growth in this fiscal because of the implementation preferential trade agreement (PTA) from January 2004. The two countries had signed PTA in 2003 during the visit of President of Pakistan Pervez Musharraf.
Pakistan and China are exchanging more than 500 items under preferential trade agreement (PTA) since January 2004. Both the countries are giving a substantial relief in customs duty on bilateral trade with the objective to magnify their mutual trade in future.
Item-wise break-up shows that imports of 32 traditional categories from China has shown a significant increase which are: Cereals, coffee, coca/chocolates, spices, feeding stuff for animals, oilseeds/fruits, vegetable/synthetic textile fiber, crude minerals excluding salt, fixed vegetable fats, chemical elements/compounds and chemical products/materials, medical/pharmaceutical products, roadmotor vehicles, machinery/spareparts, tyres/tubes of rubber, cord/wood products, paper/paper board, yarn & thread of synthetic fibers, cotton fabrics (woven), synthetic fabrics, knitted fabrics, cement & construction material, iron & steel, sanitary plumbing, medical/surgical instruments.
The commodities which witnessed increase in their exports from Pakistan to China during this fiscal are: Hides, skins/furs, raw cotton, cotton waste, crude minerals excluding salt, crude vegetable materials, chemicals, cotton yarn, fabrics (woven), glass/glassware and cutlery.
The officials of the Ministry of Commerce are of the opinion that the proposed Free Trade Agreement between Pakistan and China would further augment bilateral trade of the two countries. They said that experts of the two countries are giving final shape to the FTA.
Pakistan and China are expected to initiate trade under Free Trade Agreement from early next year, said the officials.
BY JAVED MAHMOOD
LAHORE - Pakistan had sustained a record deficit of $1.488 billion in bilateral trade with China in last financial year, The Nation learnt on Monday.
In 2004-05, Pakistan’s exports to China amounted to $354 million while imports from the said friendly country expanded to 1.842 billion dollars, the highest-ever in a year since the beginning of bilateral trade between two nations.
In last fiscal, the trade deficit had improved by 623 million dollars when measured with 865 million dollars deficit, the country had sustained in trade with China in 2003-04. In percentage, 72 per cent growth had been recorded in the growth of trade deficit in 2004-05.
According to detail, obtained by The Nation, in last fiscal the mutual trade of the two countries had crossed two billion dollars and settled at 2.196 billion, for the first time. When compared to fiscal year 2003-04, the mutual trade of Pakistan and China had gone up by 755 million dollars.
In 2003-04 the overall trade of the two countries stood at 1.441 billion dollars, which enlarged to 2.196 billion dollars in 2004-05, because of liberalisation of trade under the Preferential Trade Agreement, launched from January 2005.
Another important aspect is that Pakistan’s imports from the said country have improved by 689 million dollars, at 1.842 billion dollars in last fiscal as against 1.153 billion dollars in its preceding fiscal year.
Country’s exports to China, however, slightly inched up and amounted to 354 million dollars in 2004-05, from 288 million dollars in 2003-04.
Official sources maintained that bilateral trade between Pakistan and China had shown a rapid growth in this fiscal because of the implementation preferential trade agreement (PTA) from January 2004. The two countries had signed PTA in 2003 during the visit of President of Pakistan Pervez Musharraf.
Pakistan and China are exchanging more than 500 items under preferential trade agreement (PTA) since January 2004. Both the countries are giving a substantial relief in customs duty on bilateral trade with the objective to magnify their mutual trade in future.
Item-wise break-up shows that imports of 32 traditional categories from China has shown a significant increase which are: Cereals, coffee, coca/chocolates, spices, feeding stuff for animals, oilseeds/fruits, vegetable/synthetic textile fiber, crude minerals excluding salt, fixed vegetable fats, chemical elements/compounds and chemical products/materials, medical/pharmaceutical products, roadmotor vehicles, machinery/spareparts, tyres/tubes of rubber, cord/wood products, paper/paper board, yarn & thread of synthetic fibers, cotton fabrics (woven), synthetic fabrics, knitted fabrics, cement & construction material, iron & steel, sanitary plumbing, medical/surgical instruments.
The commodities which witnessed increase in their exports from Pakistan to China during this fiscal are: Hides, skins/furs, raw cotton, cotton waste, crude minerals excluding salt, crude vegetable materials, chemicals, cotton yarn, fabrics (woven), glass/glassware and cutlery.
The officials of the Ministry of Commerce are of the opinion that the proposed Free Trade Agreement between Pakistan and China would further augment bilateral trade of the two countries. They said that experts of the two countries are giving final shape to the FTA.
Pakistan and China are expected to initiate trade under Free Trade Agreement from early next year, said the officials.
posted by India News Watch at 9:59 AM
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