Govt decides to increase exports up to $27 billion

ISLAMABAD: In a positive development, very important buying mission from China is coming in Pakistan on September 27 and will place orders to import many items from Pakistan.

This will help reduce the trade deficit in bilateral trade with China which stands at over $14 billion, senior top notches of the Commerce Ministry told The News.

There is a realisation, the officials said, in Beijing that Pakistan’s trade deficit with China has increased manifold particularly after the implementation of FTA-1. “Now the authorities in Beijing have decided to dispatch a buying mission to Pakistan which will purchase many items may be worth $300-400 million depending the availability of exports surplus Pakistan entrepreneurs have with them.

The government wants that sending the buying mission by China should be a regular feature other than the formal trade between the two countries. Pakistan’s imports from China currently stands at over $16 billion whereas export to China stand at over $2 billion showing the trade deficit of over $14 billion which is heavily in favour of China.

Meanwhile after announcing Rs44 billion subsidy to export oriented industry particularly for textile industry, the Imran Khan government has decided to jack up the exports of the country to $27 billion from existing $23.4 billion in nine months of the ongoing fiscal 2018-19.

According to top notches in the government, the government has asked the zero rated industry to enhance the exports of the country up to $27 billion by June 2019 arguing what the industry wanted has been provided. “Though the target seems ambitious, but at the same time it is realistic as well.”

“We are sure that the target will be achieved on account of two reasons; one is that global economies have started recovering and their masses are now in spending mode and the second is that Pak rupee has been devalued for 4 times,” the officials said adding: “We are expecting the growth in the exports as the international trends are going in favour.”

The textile sector has been communicated that those business tycoons who goes for value addition and increase their focus on garments will be more beneficiary of the subsidy. In the supply chain, high end business houses will be get more benefits. However, lower end business houses in the supply chain for example those who deal in yarns will also get the benefits of the subsidy but at lower side.

Pakistan is braving right now the overall trade deficit of $37 billion as the imports stand at $60 billion and exports are at $23.4 billion.