KARACHI, May 19: Pakistan’s exports to its six fellow countries in the Asian Clearing Union (ACU) totalled $507.8 million in 2004 whereas its imports from these countries reached $712.6 million. Thus the country posted a combined trade deficit of $204.8 million with Bangladesh, India, Iran, Myanmar, Nepal and Sri Lanka. Pakistan’s trade data with Bhutan — the seventh member of the ACU — are not available presumably being too negligible.

In 2004 Pakistan’s exports to Bangladesh earned $189 million, followed by Sri Lanka ($121.2m); India (109.8m); Iran ($81.9m); Nepal ($3.2m) and Myanmar ($2.7m), according to the ACU report 2004 approved at its annual meeting held in Lahore, earlier this week. Data on exports to Bhutan are not available.

Pakistan’s imports in 2004 were at $463.1 million from India, followed by $156m from Iran; $45.6m from Sri Lanka; $41.7m from Bangladesh; $3.6m from Myanmar and $2.6m from Nepal.

The report also highlights movements in key economic indicators of Pakistan and other countries in the ACU, the regional clearing house for eight countries including Pakistan and India. A closer look at the data on Pakistan’s trade with other ACU members reveals that its exports to six ACU nations included both conventional items like cotton, yarn and textile made-ups and a vast variety of non-conventional items ranging from machinery and construction material to household accessories and fashion products.

On the other hand, its imports from six ACU countries included plastic goods, engineering plants, scientific instruments, chemicals, fruits, spices, rubber, copra and pharmaceutical products etc.

As Pakistan moves forward to increase its exports, it needs to focus more on regional partners including those in the ACU and Saarc besides striving to get a larger market share in the ASEAN. At $507.8 million in 2004, Pakistan’s exports to fellow ACU countries are too low and need to be boosted urgently. Further, the fact that it posted a trade deficit of $204.8 million with these countries in the last calendar year underlines the urgency for developing an ACU-specific strategy to cut down this deficit.

On that front, more emphasis needs to be placed on increasing exports to the ACU countries rather than reducing imports from there. The reason is imports from regional trade partners are at times cheaper than from far-away countries and growing volumes of imports from these countries also helps in strengthening bilateral relations with them. This becomes all the more important because of the fact that India too is in the ACU with which Pakistan’s growing trade ties would help in establishing political stability in the region, so badly required for both countries.

Since Pakistan’s trade data with the ACU countries relate to the last calendar year instead of the fiscal year it is difficult to work out the share of the ACU countries in Pakistan’s overall imports and exports.

However, Pakistan’s $507.8 million to the ACU nations in 2004 forms 4.1 per cent of its total exports of $12.27 billion in fiscal year 2004 and its imports of $712.6 million from ACU countries accounts for 4.6 per cent of its total imports of $15.47 billion.

India’s trade with seven other ACU countries has been in its favour as the country posted a trade surplus of $3.67 billion in fiscal year April-March 2003-04. Its exports to seven ACU countries totalled $4.99 billion or 7.8 per cent of its total exports of $63.84 billion. On the other hand, India’s imports from ACU countries were at $1.321 billion in fiscal year 2003-04 or 1.7 per cent of its overall imports of $78.15 billion.