FTAs with China, Malaysia worsen Pak trade imbalance
The News - International, Pakistan
FTAs with China, Malaysia worsen Pak trade imbalance
6 November 2008
By Aftab Maken
ISLAMABAD: Pakistan has so far signed three Free Trade Agreements (FTAs), of which trade balance with two countries is in negative while the remaining one shows marginal growth.
Trade balance with China and Malaysia was not in favour of Pakistan as imports from the two countries surpassed the goods exported to them during the outgoing fiscal, reveals official data compiled by the Ministry of Commerce.
The FTA between Pakistan and Sri Lanka signed in 2005 and with China in November 2006 while the FTA with Malaysia is operational from January 2008.
Trade balance between China and Pakistan is widening ever since the signing of FTA and it swelled from $2.95 billion in 2006-07 to $4.01 billion in 2007-08 while trade figures with Malaysia ballooned from $872 million in 2006-07 to $1.44 billion in 2007-08, it said.
There was a phenomenal growth in import of Chinese machinery and parts, chemical elements and compounds, fertilizer manufactured, yarn and synthetic fibers, construction material and others.
FTA with Malaysia is also in negative and the commodities imported from Malaysia include animal and vegetable oils and fats, chemical elements and compounds, machinery and parts and others.
The FTA between Pakistan and Sri Lanka is in favour of Pakistan as the trade balance is in surplus, however the exports registered only a nominal growth of $15 million when compared with the corresponding period.
The commodities showing surge in exports include rice and vegetables & pulses whereas cotton fabrics’ exports declined.
Sri Lanka would be able to enjoy duty free market access on 206 products in the Pakistani market including tea, rubber and coconut. Pakistan, in return, would gain duty free access on 102 products in the Sri Lankan market. These products include oranges, basmati rice and engineering goods.
