Govt urged to take early steps for bridging gap between imports, exports

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to take immediate measures for bridging widening gap between imports and exports, a statement said on Monday.

LCCI president Mian Nauman Kabir, senior vice president Mian Rehman Aziz Chan and vice president Haris Ateeq said that increasing import bill was harmful for the economy, which required immediate government intervention.

According to data, Pakistan’s imports in July-November have risen to $29.9 billion.

The government should take concrete measures for increasing exports to overcome the trade deficit, they said, adding that Pakistan’s most favourite export markets have been Europe, North America and the Gulf States.

The exporters need to look for new markets in the Central Asian Republics, Africa, Indonesia and Malaysia, the LCCI office-bearers said, adding that the share of Pakistan’s imports in the Central Asian Republics is negligible.

The Pakistani exports were also suffering due to skyrocketing input costs, they said, adding that the rise in imports were developing a perception that Pakistan is becoming a trading place instead of a hub of industrialisation.

Besides, cutting the cost of doing business, the government would have to evolve a long-term strategy to make its products competitive in the global market.

The growing trade deficit is posing a key challenge to the macroeconomic stability of the country, besides converting it into a consumer society, the LCCI office-bearers said.

Galloping trade deficit might dent the country’s debt payment capacity, they said and suggested that the relevant government quarters should join hands with the private sector for finding a methodology to increase exports.

To give relief to the export-oriented sectors, major issues such as huge delay in the release of refunds, high input costs and a large number of duties and taxes should be resolved on a priority basis.

They said Pakistan’s Mission abroad should also be given a task to explore new markets and new buyers for the Pakistani merchandise.