Country’s trade deficit swells to $14b: Fahim

ISLAMABAD: Pakistan’s trade deficit swelled to more than $14 billion between June 2009 and April this year, Commerce Minister Makhdoom Amin Fahim told the Senate on Friday. The deficit stood at $19.249 billion during the fiscal year 2008-09, according to the minister, who attributed it mainly to spikes in global oil and food prices.

Informing the upper house of parliament about government measures like the imposition of duty on non-essential, luxury items and initiation of trade diplomacy for gaining better market access, he also highlighted signing of free trade and preferential trade agreements with various countries

Referring to the Afghan Transit Trade Agreement, he said that bilateral trade between Pakistan and Afghanistan “is not governed under the agreement. It only obliges Pakistan to grant transit facilities to Afghanistan’s international trade through its territory”.

Earlier, Chairman Senate Farooq H Naik criticised ministers’ for being absent from the upper house of parliament and directed Leader of the House Syed Nayer Hussain Bokhari to bring this issue in the notice of the prime minister.

He said that ministers should compulsorily attend Senate meetings to avoid wasting public money worth millions of rupees. He said that absence without any intimation was unfair.

Minister for Labour and Power Syed Khurshid Shah assured the Senate chairman that he would convey the concern to the prime minister as well as the ministers concerned.

Khurshid Shah said that the managing director of PIA should not exceed his powers, instead he should try to make the national carrier profit-oriented.

“The government will look into the matter now. His powers are limited. His (first and foremost) priority should be to reduce PIA’s losses,” said the minister responding to a point raised by Raza Rabbani.

Rabbani had opposed the reported decision to grant two-year extension to pilots after retirement age, saying that the move would trigger unemployment. Young pilots, he said, would find it hard to get jobs.

Khurshid Shah said pilots should retire at the age of 60 years to avoid any untoward incidents because of fatigue.

To another point, he reiterated the government’s resolve to repeal of the draconian Section 27-B of the Banking Companies Ordinance.

Responding to another point of order, the labour minister said that the government was very much alive to the situation arising out of flash floods, and the prime minister had directed the paramilitary, civil administration and the army to expedite the rescue and relief operation.

He said the people in the affected areas were being provided all out support and the federal government had not shifted its focus away from the provincial governments. Instead, he said, it “is working with them”.

He said heavy rains were desperately needed to overcome water and power shortages, adding that all roads blocked because of rains have been opened.

Published in The Express Tribune, July 31^st, 2010.