MUSHTAQ GHUMMAN

ISLAMABAD: Pakistan exports posted 14 percent growth - to $ 19.207 billion during the first 10 months (July-April) of 2017-18 from $ 16.895 billion in the corresponding period of 2016-17.

According to the provisional foreign trade figures, imports during this period also showed 14 percent growth and rose to $ 49.45 billion from $ 43.331 billion.

Trade deficit also grew by 14 per cent - to $ 30.245 billion during this period as compared to $ 26.436 billion during the comparable period of 2016-17.

Exports stood at $ 2.1328 billion in April 2018 as compared to $ 1.798 billion in April 2017, showing an increase of 19 per cent, whereas imports registered an increase of 3 per cent to $ 5.1095 billion from $ 4.962 billion in corresponding month 2017. The trade deficit stood at minus 6 per cent during this period.

The Commerce Division has claimed that initiatives by the government to provide duty drawback as well as the exchange rate adjustments have contributed positively to the trade balance. Improved market access especially in the European market owing to the successful review of GSP Plus facility also played an important role

However, in April 2018 exports posted a negative growth of 4 percent to $ 2.1328 billion from $ 2.231 billion in March 2018. Likewise imports also showed negative growth of 3 percent to $ 5.1095 billion from $ 5.280 billion during this period. Trade deficit indicated a negative growth of 2 percent in April 2018 as compared to March 2018.

The Commerce Division has almost finalised a five-year Strategic Trade Policy Framework (STPF) 2018-23 expected to be submitted to the incumbent federal cabinet. However, it appears that the incumbent cabinet will not approve the STPF and leave it for the next elected government.

There seems to be no specific measures in budget for exports enhancement. Depreciation by 10 percent could not bring more than 4-5 percent growth in exports.

Finance Minister Dr Miftah Ismail, has, however, announced that a committee is being constituted to review the exports package. It is unclear if the committee has been constituted yet and if so who is heading it.

The government has claimed that several measures were taken to increase exports such as reduction in mark-up on Export Re-Finance Facility (ERF) and long term financing facility along with the Prime Minister’s export package of Rs 180 billion.

“In percentage terms the exports growth was 35 per cent in March and 30 per cent in April 2018,”said Secretary Commerce Younus Dagha.