Looming crisis

This refers to the news report ‘Trade gap widens 11.73 percent to $19.735bln in July-May’ (June 11). Our exports have not only missed the target by a wide margin but are also lower by 5.27 percent over the same period last year despite our GSP Plus status in EU countries. On the other hand, imports are higher by 2.1 percent over the comparable period of last year and have also busted the target set for the current year.
While our oil import bill has decreased due to low international prices the non-oil import bill has seen a steep rise. This indicates that foreign countries are dumping cheap goods in our country to the detriment of local industries. This dumping is taking place due to an imprudent import policy and free trade agreements/preferential trade agreements signed with foreign countries. As a result of a negative trend – both in the exports and the imports – trade gap has widened by over $2 billion during the last eleven months which is a cause for much concern. Consequently, balance of payments will register a large deficit, showing the vulnerability of our financial health.
Huma
Karachi