KARACHI: Pakistan’s exports to the region – Afghanistan, Bangladesh, China, Iran, India and Sri Lanka – during the first quarter of current fiscal year increased by $51 million or 5 per cent reaching $1.091 billion, according to latest data released by the State Bank.

Pakistan’s trade deficit with the region declined during the period under review as imports from the said countries dipped by 4pc to $3.034bn against the same period last year.

The decline was mainly attributable to the dip in imports from China, which fell to $2.6bn during the first quarter against the $2.8bn same period last year. Despite the decline in imports from China, the Pakistan’s trade deficit with Asia’s largest economy is still huge; currently at $2.17bn. On the other hand, during the first quarter, exports to China increased to $430m against the $365m last year.

Prime Minister Imran Khan is set to visit China this week to hold discussions including ways to reduce the widening trade deficit between the two countries. During his first visit to China, prime minster will lead a delegation which will seek new avenues for Pakistan’s exports.

However, despite tensions with India, Pakistan imported goods worth $365m during the quarter up from $310m last year from Asia’s second largest economy. Whereas, Pakistani exporters could not exploit the Indian market as cumulative exports to the country during the quarter fell to $102m from $114m last year.

Business communities from both countries believe that the bilateral trade could be easily increased to $5bn.

On the western frontier, exports to Afghanistan also declined from $317m to $300m during the quarter. The dip came during September when exports dropped to $59.7m against $104m last year. Imports from Afghanistan, during the first quarter, doubled to $42m from $20.5m.

Trade with Iran, on the other hand, has completely ended. No imports were recorded from Iran during the quarter, whereas exports fell to meagre $1.2m compared.

In case of Bangladesh, exports during the quarter increased to $175m up from $156m last year whereas imports during the same period were recorded at $15m.

Similarly, exports to Sri Lanka rose to $83m compared to $73m last year with imports from the island falling to $12.5m.

Published in Dawn, November 3rd, 2018