LCCI takes govt to task over rising trade deficit

Urges export-oriented mindset, early release of refunds

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) Tuesday took strong exception to the historic trade deficit during the last eleven months and urged the ministries of finance and commerce to take instantaneous measures to sustain balance between imports and exports.

The LCCI Acting President Amjad Ali Jawa and Vice President Muhammad Nasir Hameed Khan said that issue of trade deficit must be controlled immediately otherwise this important economic indicator would shatter the confidence of investors.

They said that Pakistan’s trade deficit had sharply swelled by around $30 billion or 42.12% during first eleven months of current fiscal year as compared to the deficit of $21.1 billion in the corresponding months of the previous fiscal year.

The widening of trade deficit is due to significant increase in imports by 20.6% to $48.53 billion during July-May FY17 as compared to $40.25 billion in the same period of the previous fiscal year.

On the other hand, they said, exports came down by 3.13% to $18.54 billion during the period under review as against $19.14 billion in the same period of the previous year.

The LCCI office-bearers said that rising imports and declining exports are developing a perception that Pakistan is becoming a trading place instead of a hub of industrialisation.

They said that apart from cutting the cost of doing business in Pakistan, the government would have to evolve a long-term strategy to make its products attractive in the global market to increase its exports.

The LCCI office-bearers said that the growing trade deficit is damaging the country’s macroeconomic stability, debt payment capacity and is turning Pakistan into a consumer society.

While suggesting joint policy formulation for effective measures, the officials urged the government to resolve major issues like delay in release of refunds, inconsistent power supply and high input costs stemming from high duties and taxes.

Importance of Pakistani missions abroad was also stressed in exploring new markets for Pakistani goods and increasing access in existing ones.

Published in The Express Tribune, June 21^st, 2017.

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