When the government has all set to grant most favoured nation (MFN) status to India, the trade statistics between the two countries show that Pakistan's exports to India is falling gradually and imports rising speedily, resulting that Pakistan has faced over one billion dollars trade deficit during the last fiscal year 2010-11.
Talks with India, Pakistan's competitor in the world market, to declare it MFN are in almost final stage as Indian Commerce Minister Anand Sharma, leading a 120-member trade delegation is on three-day visit of Pakistan to finalise trade modalities.
The most authentic statistics of export receipts and imports payment collected by the State Bank of Pakistan (SBP) show that, despite getting MNF status, Pakistan is facing a massive trade deficit with India, and the overall trade volume is completely in favour of India. According to State Bank's statistics of foreign trade receipts/payments, trade balance between two neighbour countries is rapidly deteriorating as imports from India are quickly rising, while on the other side exports from Pakistan are on downward side. Resultantly, Pakistan's trade balance with India is 100 percent in favour of India and Pakistan faced a deficit of $1.158 billion during the last fiscal year 2010-11.
With imports payment of $1.033 billion and export receipts of $313.037 million, Pakistan faced a deficit of $719.857 million in fiscal year 2008-09. The deficit in the next fiscal 2009-10 surged to $802 million, up by 11 percent, with $1.061 billion imports payment and $260 million export receipts.
According to SBP's statistics, the trade balance with India further deteriorated during the last fiscal year as Pakistan faced a deficit of $1.158 billion as compared to $802 million in fiscal year 2010, depicting an increase of 44 percent in fiscal year 2011. During the period, the country's export receipts from India stood at $286.725 million and import payments at $1.445 billion, showing a deficit of $1.158 billion deficit just in a single year.
Exports receipts from India are gradually decreasing and registered a decline of 8 percent or $26.342 million to $287 million in fiscal year 2011 compared to $313 million in fiscal year 2009. On the other side, imports payments to India posted a healthy growth and surged by 40 percent or $412 million to $1.445 billion in fiscal year 2011 compared to $1.032 billion in fiscal year 2009.
The initial payment and receipts statistics of current fiscal year 2012 say that trade balance is completely in favour of India, as during the first half of current fiscal year 2012 Pakistan's exports to India stood at $134 million against $605 million imports, depicting a trade deficit of $471 million.
Exporters claim that they have always faced bureaucratic hurdles to export commodities to India and the delay of certification to Pakistani cement companies is the latest example of barrier. "If India provides equal level playing field to Pakistani exporters, as granted by the our ministry of commerce, trade volume between two countries will balance, besides healthy growth", they added. They said that Pakistani traders and industrialist are not against MNF status, but they need sincerity from India side as well easy access and removal of bureaucratic barriers.
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